Which of the following statements regarding realized income is true?

A. Realized income requires some type of transaction or exchange with a second party.

B. Taxpayers need not include realized income in gross income unless a specific provision of the tax code requires them to do so.

C. None of these statements is true.

D. Once income is realized it may not be excluded from gross income.

Ben's employer offers employees the following benefits. What amount must Ben include in his gross income?

Benefit Value Health insurance coverage 5,800 Group term life insurance (Policy $50,000) 4,270 Disability insurance coverage (considered purchased by Ben) 3,600 Dependent care expenses 5,000

A. $14,400

B. $3,600

C. $9,400

D. Zero - none of these benefit is included in gross income.

E. $5,000