This year, Janelle received $290,000 in life insurance proceeds Under the following scenarios, how much of the $290,000 is taxable a Janelle received the proceeds upon the death of her father, Julio b Janelle received the $290,000 proceeds because she was diagnosed with colon cancer (life expectancy of 6 months), and she needed the proceeds for her care c The proceeds related to a life insurance policy she purchased for $46,100 from a friend in need After purchase, Janelle paid annual premiums that total $27,260 References eBook Resources Problem This year, Janelle received $290,000 in life insurance proceeds Under the following scenarios, how much of the $290,000 is taxable a Janelle received the proceeds upon the death of her father, Julio b Janelle received the $290,000 proceeds because she was diagnosed with colon cancer (life expectancy of 6 months), and she needed the proceeds for her care c The proceeds related to a life insurance policy she purchased for $46,100 from a friend in need After purchase, Janelle paid annual premiums that total $27,260 For each of the following independent situations, indicate the amount the taxpayer must include in gross income a Phil won $630 in the scratch off state lottery There is no state income tax b Ted won a compact car worth $24,200 in a TV game show Ted plans to sell the car next year c Al Bore won the Nobel Peace Prize of $727,500 this year Rather than take the prize, Al designated that the entire award should go to Weatherhead Charity, a tax exempt organization d Jerry was awarded $2,700 from his employer, Acme Toons, when he was selected most handsome employee for Valentines Day this year e Ellen won a $1,660 cash prize in a school essay contest The school is a tax exempt entity, and Ellen plans to use the funds to pay her college education f Gene won $450 in the office March Madness pool Rick, who is single, has been offered a position as a city landscape consultant The position pays $70,000 in cash wages Assume Rick files single and is entitled to one personal exemption Rick deducts the standard deduction instead of itemized deductions (use thetax rate schedules )(Do not round intermediate calculations Round your final answer to the nearest whole dollar amount ) a What is the amount of Ricks after tax compensation (ignore payroll taxes) b 1 Suppose Rick receives a competing job offer of $65,000 in cash compensation and nontaxable (excluded) benefits worth $4,800 What is the amount of Ricks after tax compensation for the competing offer b 2 Which job should he take if taxes were the only concern Competing job Landscape consultant Terry was ill for three months and missed work during this period During his illness, Terry received $4,650 in sick pay from a disability insurance policy What amounts are included in Terrys gross income under the following independent circumstances a Terry has disability insurance provided by his employer as a nontaxable fringe benefit Terrys employer paid $2,530 in disability premiums for Terry this year b Terry paid $2,530 in premiums for his disability insurance this year c Terrys employer paid the $2,530 in premiums for Terry, but Terry elected to have his employer include the $2,530 as compensation on Terrys W 2 d Terry has disability insurance whose cost is shared with his employer Terrys employer paid $2,000 in disability premiums for Terry this year as a nontaxable fringe benefit, and Terry paid the remaining $530 of premiums from his after tax salary (Do not round intermediate calculations Round your answer to the nearest whole dollar amount )

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This year, Janelle received $290,000 in life insurance proceeds. Under the following scenarios, how much of the $290,000 is taxable? a. Janelle received the proceeds

This year, Janelle received $290,000 in life insurance proceeds. Under the following scenarios, how much of the $290,000 is taxable?

a.	Janelle received the proceeds upon the death of her father, Julio.

b.	Janelle received the $290,000 proceeds because she was diagnosed with colon cancer (life expectancy of 6 months), and she needed the proceeds for her care.

c.	The proceeds related to a life insurance policy she purchased for $46,100 from a friend in need. After purchase, Janelle paid annual premiums that total $27,260.

References eBook & Resources Problem

This year, Janelle received $290,000 in life insurance proceeds. Under the following scenarios, how much of the $290,000 is taxable?

a.	Janelle received the proceeds upon the death of her father, Julio.

b.	Janelle received the $290,000 proceeds because she was diagnosed with colon cancer (life expectancy of 6 months), and she needed the proceeds for her care.

c.	The proceeds related to a life insurance policy she purchased for $46,100 from a friend in need. After purchase, Janelle paid annual premiums that total $27,260.

For each of the following independent situations, indicate the amount the taxpayer must include in gross income:

a.	Phil won $630 in the scratch-off state lottery. There is no state income tax.

b.	Ted won a compact car worth $24,200 in a TV game show. Ted plans to sell the car next year.

c.	Al Bore won the Nobel Peace Prize of $727,500 this year. Rather than take the prize, Al designated that the entire award should go to Weatherhead Charity, a tax-exempt organization.

d.	Jerry was awarded $2,700 from his employer, Acme Toons, when he was selected most handsome employee for Valentines Day this year.

e.	Ellen won a $1,660 cash prize in a school essay contest.The school is a tax-exempt entity, and Ellen plans to use the funds to pay her college education.

f.	Gene won $450 in the office March Madness pool.

Rick, who is single, has been offered a position as a city landscape consultant. The position pays $70,000 in cash wages. Assume Rick files single and is entitled to one personal exemption. Rick deducts the standard deduction instead of itemized deductions. (use thetax rate schedules.)(Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)

a.	What is the amount of Ricks after-tax compensation (ignore payroll taxes)?

b-1.	Suppose Rick receives a competing job offer of $65,000 in cash compensation and nontaxable (excluded) benefits worth $4,800.What is the amount of Ricks after-tax compensation for the competing offer?

b-2.	Which job should he take if taxes were the only concern?

Competing job

Landscape consultant

Terry was ill for three months and missed work during this period.During his illness, Terry received $4,650 in sick pay from a disability insurance policy.

What amounts are included in Terrys gross income under the following independent circumstances?

a.	Terry has disability insurance provided by his employer as a nontaxable fringe benefit.Terrys employer paid $2,530 in disability premiums for Terry this year.

b.	Terry paid $2,530 in premiums for his disability insurance this year.

c.	Terrys employer paid the $2,530 in premiums for Terry, but Terry elected to have his employer include the $2,530 as compensation on Terrys W-2.

Terry has disability insurance whose cost is shared with his employer.Terrys employer paid $2,000 in disability premiums for Terry this year as a nontaxable fringe benefit, and Terry paid the remaining $530 of premiums from his after-tax salary.(Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)