3) Chris made a $10,000 loan, bearing interest at 12%, to a friend. Chris directed the...

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3) Chris made a $10,000 loan, bearing interest at 12%, to a friend. Chris directed the friend to pay the interest to Chris's 15-year-old daughter. During the current year, the daughter received $1,200 in interest. How much income is reported, and by whom, during the current year? 4) Kevin, a cash basis taxpayer, received from the following from his employer during 20x5: - Salary of $75,000 Bonus of $10,000. In 20x6, the company determined that the bonus had been incorrectly computed and required Kevin to repay $3,000. - Use of a company car for his vacation. Rental value for the period would have been $900. - $4,000 advance from his employer to pay child support (an advance is a temporary loan) Determine the effects of these items on Kevin's gross income. 3) Chris made a $10,000 loan, bearing interest at 12%, to a friend. Chris directed the friend to pay the interest to Chris's 15-year-old daughter. During the current year, the daughter received $1,200 in interest. How much income is reported, and by whom, during the current year? 4) Kevin, a cash basis taxpayer, received from the following from his employer during 20x5: - Salary of $75,000 Bonus of $10,000. In 20x6, the company determined that the bonus had been incorrectly computed and required Kevin to repay $3,000. - Use of a company car for his vacation. Rental value for the period would have been $900. - $4,000 advance from his employer to pay child support (an advance is a temporary loan) Determine the effects of these items on Kevin's gross income.

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For Chriss situation The 1200 in interest income is reported by Chriss daughter because Chris dir... View the full answer