The Evans are married. Tony works for TUA and Lois runs a puppy day care at her house. Out of the following transactions, what do they recognize as income? Answers should be rounded to whole numbers.
QUESTION 14 The Evans received $23,126 from an annuity he purchased ten years ago. They purchased the annuity, to be paid annually for 20 years, for $205,313. How much do they include in gross income? QUESTION 15 From all the scenarios given to you, what value goes on line 1 of the 1040? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BI U S Paragraph Arial 14px A V TK X QUESTION 16 From all the scenarios given to you, what value goes on line 3b of the 1040? QUESTION 17 From all the scenarios given to you, what value goes on line 1 of the 1040's Schedule 1? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I Y S Paragraph Arial 14px A P QUESTION 18 From all the scenarios given to you, what value goes on line 2a of the 1040? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). QUESTION 1 The Evans borrowed $21,956 from TUA (his employer) to purchase a car. TUA charged him 2 percent interest ($a*.02) on the loan, which the Evans paid on December 31. TUA would have charged the Evans $a*.06 if interest has been calculated at the applicable federal interest rate. How much should they include in gross income? QUESTION 2 Lois's puppy day care business collected $39,889 in revenues. In addition, customers owed her $3,001 at year-end. During the year, Lois spent $5,460 for supplies, $1,304 for utilities, $13,600 for rent, and $473 for miscellaneous expenses. One customer gave her use of his vacation home for a week (worth $2,647) in exchange for Lois allowing her puppy to attend the day care center free of charge. Lois accounts for her business using the cash method of accounting. How much should they include in gross income? QUESTION 3 Tony's employer pays the couple's annual health insurance premiums of $5,718 for a qualified plan. How much should they include in gross income? QUESTION 4 Tony received $306 cash for reaching 10 years of continuous service at TUA. How much should they include in gross income? QUESTION 5 Lois won a $944 cash prize at her church-sponsored Bingo game. How much should they include in gross income? QUESTION 6 Lois received $2,163 in alimony and $4,853 in child support payments from her former husband. They divorced in 2018. How much should they include in gross income? QUESTION 7 The Evans won 774 in an illegal game of poker (the game was played in Utah, where gambling is illegal). How much should they include in gross income? QUESTION 8 Lois is a 15% owner of QRS Inc., a Subchapter S corporation. The company reported ordinary business income for the year of $93,517. Lois acquired the QRS stock 2 years ago. How much should they include in gross income? QUESTION 9 The couple bought 57 shares of ABC Inc. stock for $38 per share on July 2. The stock was worth $50 a share on December 31. The stock paid an ordinary dividend of $0.8 per share on December 1. How much do they include in gross income? QUESTION 10 For meeting his performance goals this year, Tony was informed on December 27 that he would receive a $4,411 year- end bonus. TUA (located in Houston, TX) overnighted Tony's bonus check from its payroll processing center (Tampa, FL) on December 28. Tony did not check the mail at his home until January 2. How much do they include in gross income in the current year? QUESTION 11 The Evans received a $669 refund of the $3,041 in state income taxes his employer withheld from his pay last year. The Evans claimed $24,802 in itemized deductions last year (the standard deduction for married filing jointly was 24,400). How much do they include in gross income? QUESTION 12 The Evans sold 765 shares of stock for $19 a share. They inherited the stock two years ago. Their tax basis (or investment) in the stock was $9 per share. How much do they include in gross income? QUESTION 13 The Evans' son, Joshua, instructed his employer to make half of his final paycheck year payable to his parents as a gift from Joshua to them. The Evans received the check on December 30 in the amount of $1,084. How much do they include in gross income? QUESTION 14 The Evans received $23,126 from an annuity he purchased ten years ago. They purchased the annuity, to be paid annually for 20 years, for $205,313. How much do they include in gross income? QUESTION 15 From all the scenarios given to you, what value goes on line 1 of the 1040? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BI U S Paragraph Arial 14px A V TK X QUESTION 16 From all the scenarios given to you, what value goes on line 3b of the 1040? QUESTION 17 From all the scenarios given to you, what value goes on line 1 of the 1040's Schedule 1? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I Y S Paragraph Arial 14px A P QUESTION 18 From all the scenarios given to you, what value goes on line 2a of the 1040? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). QUESTION 1 The Evans borrowed $21,956 from TUA (his employer) to purchase a car. TUA charged him 2 percent interest ($a*.02) on the loan, which the Evans paid on December 31. TUA would have charged the Evans $a*.06 if interest has been calculated at the applicable federal interest rate. How much should they include in gross income? QUESTION 2 Lois's puppy day care business collected $39,889 in revenues. In addition, customers owed her $3,001 at year-end. During the year, Lois spent $5,460 for supplies, $1,304 for utilities, $13,600 for rent, and $473 for miscellaneous expenses. One customer gave her use of his vacation home for a week (worth $2,647) in exchange for Lois allowing her puppy to attend the day care center free of charge. Lois accounts for her business using the cash method of accounting. How much should they include in gross income? QUESTION 3 Tony's employer pays the couple's annual health insurance premiums of $5,718 for a qualified plan. How much should they include in gross income? QUESTION 4 Tony received $306 cash for reaching 10 years of continuous service at TUA. How much should they include in gross income? QUESTION 5 Lois won a $944 cash prize at her church-sponsored Bingo game. How much should they include in gross income? QUESTION 6 Lois received $2,163 in alimony and $4,853 in child support payments from her former husband. They divorced in 2018. How much should they include in gross income? QUESTION 7 The Evans won 774 in an illegal game of poker (the game was played in Utah, where gambling is illegal). How much should they include in gross income? QUESTION 8 Lois is a 15% owner of QRS Inc., a Subchapter S corporation. The company reported ordinary business income for the year of $93,517. Lois acquired the QRS stock 2 years ago. How much should they include in gross income? QUESTION 9 The couple bought 57 shares of ABC Inc. stock for $38 per share on July 2. The stock was worth $50 a share on December 31. The stock paid an ordinary dividend of $0.8 per share on December 1. How much do they include in gross income? QUESTION 10 For meeting his performance goals this year, Tony was informed on December 27 that he would receive a $4,411 year- end bonus. TUA (located in Houston, TX) overnighted Tony's bonus check from its payroll processing center (Tampa, FL) on December 28. Tony did not check the mail at his home until January 2. How much do they include in gross income in the current year? QUESTION 11 The Evans received a $669 refund of the $3,041 in state income taxes his employer withheld from his pay last year. The Evans claimed $24,802 in itemized deductions last year (the standard deduction for married filing jointly was 24,400). How much do they include in gross income? QUESTION 12 The Evans sold 765 shares of stock for $19 a share. They inherited the stock two years ago. Their tax basis (or investment) in the stock was $9 per share. How much do they include in gross income? QUESTION 13 The Evans' son, Joshua, instructed his employer to make half of his final paycheck year payable to his parents as a gift from Joshua to them. The Evans received the check on December 30 in the amount of $1,084. How much do they include in gross income
