For each of the following situations, determine the amount of Gross Income to be included by the taxpayer.
Situation 1
April received the following items in 2014
Salary ............................................................... $ 35,800
Productivity bonus ................................................. 3,000
Alimony ................................................................ 9,000
Child support .........................................................20,000
State tax refund (no deduction taken in 2013) ................... 1,530
Interest on Wayne County school bonds ......................... 10,000
Worker's compensation ............................................. 11,000
Dental insurance premiums (paid by employer) .................. 1,700
Medical insurance premiums (paid by employer) ................ 6,000
Reimbursement for medical benefits (not deducted) ........................ 500
Reimbursement for lost wages from an employer
provided plan .................................................... 1,000
Life insurance proceeds from deceased uncle's policy ................ 15,000
Situation 2
John, age 23, is a full time student at Wayne State University and a candidate for a bachelor's degree in Accounting. During 2014, he received the following items:
Salary ............................................................... $ 4,200
Sale of term papers ..................................................... 400
Loan from financial aid office .................................... 7,500
Cash prize from radio contest ................................................... 700
Inheritance from aunt .............................................. 30,000
Unemployment compensation .................................... 1,000
Scholarship for room and board ................................. 4,000
Tuition Scholarship .................................................. 2,000
Spring Break trip paid for by grandfather ........................ 950