1. Helen receives the $200 lump sum life insurance payment with her friend Alice dies. How much of the payment is taxable to Helen?
2. Quinn is a tax accountant who works very hard for a large corporate client. The client is please and gives her a gift of $10,000 at year end. How much of the gift is taxable to Quinn?
3. Charleen received a gift from her boyfriend of $10,000 he knows she is having financial problems and wants to help her. How much of the gift is taxable to Charlene?
4. Robbie receives this scholarship of $20,000 to an elite private college. $10,000 of the scholarship is earmarked for tuition and $10,000 covers his room and board. How much of the scholarship if any is taxable to rob?
5. Vandelle is a taxpayer in the 28% bracket he invest in o-tay Mesa Water District bonds that pay 6% interest what taxable interest rate will provide the same after tax return to Vandell?
6. Karen is a well-off retired investment advisor who is in the 35 percent tax bracket. She has a choice between investing in a high quality municipal bond pain 5 percent or a high quality corporate bond pain seven percent which interest do you think she will make and why?