Robert works for American Motors. American Motors pays a $1,200 premium on Robert's health insurance in 2020. Robert has an operation on his big toe in 2020 that cost $7,200. The insurance company paid for $6,800 of it. Which one of the following is true for 2020?

a.Robert must claim the $6,800 paid by the insurance company for the operation as income.

b.Robert must claim the $1,200 premium and the $6,800 insurance payment as income.

c.Robert must claim the $1,200 premium paid by his employer as income.

d.None of these events are taxable on his 2020 return.

In the current year, Marc, a single taxpayer, has ordinary income of $35,000. In addition, he has $3,000 in short-term capital gains, short-term capital losses of $6,000, and long-term capital gains of $7,000. What is Marc's adjusted gross income (AGI) for the current year?

a.$32,000

b.$34,000

c.$36,000

d.$39,000

All of the following amounts are taxable income to the recipient except:

a.Gifts

b.Salaries

c.Unemployment compensation

d.Farm income

e.Prizes