In 20X1, Lee was hurt in the course of his employment with Foster Farms. In 20X1, Lee
Question:
In 20X1, Lee was hurt in the course of his employment with Foster Farms. In 20X1, Lee was paid the following amounts from Foster Farms' worker's compensation insurance company:
$30,000 for a physical injury suffered by Lee $50,000 for replacement wages when Lee was unable to work $70,000 for physical pain suffered by Lee
How much of the above does Lee include in his taxable income for 20X1?
3. Jill is in the 24% Federal Marginal Tax rate. In 20X1, Jill bought $10,000 in State of California Municipal bonds, and earned $250 in interest from those Municipal bonds. How much money does Jill earn from the $250 in interest from the Municipal bonds after she pays Federal Income Tax on the $250 in interest?
4. In 20X1, Sanjay borrowed $100,000 from his sister. In 20X3, Sanjay told his sister he could not repay the loan. Sanjay's sister forgave Sanjay all $100,000 of the loan. In 20X3, how much does Sanjay include in his taxable income from the forgiveness of debt by his sister?
5. In 20X1, Juan is a student at UC Berkeley. Juan received the following from UC Berkeley in 20X1:
$30,000 scholarship for Tuition $10,000 scholarship for Books and Fees $20,000 for working as a teaching assistant $20,000 for room and board
How much of the above must Juan include in his taxable income for 20X1?
6. Diamelle purchased a life insurance policy on her life, and named Eric, her husband, as the beneficiary. Diamelle paid $50,000 for the life insurance policy. Upon Diamelle's death, the life insurance policy would pay $2,000,000 to Eric. On 6/30/20X1, Diamelle died. On 8/30/20X1, the insurance company paid Eric $2,000,000 pursuant to the life insurance policy.
How much of the insurance policy payment does Eric include in his taxable income in 20X1?
7. On 3/30/20X1, Rynn received a gift of $1,000,000 in cash from her father Matthew. How much taxable income from the $1,000,000 gift does Rynn include in her Federal taxable income in 20X1?
8. Devon was involved in a vehicle accident. Devon sued Dianne, the other driver. Dianne was found to be 100% at fault. Dianne paid Devon the following amounts pursuant to the lawsuit:
- $30,000 for physical injuries that Devon sustained in the accident.
- $40,000 for medical care for Devon
- $60,000 for punitive damages
- $30,000 to replace Devon's car. Devon's basis in her car at the time of the accident was $30,000
How much of the above does Devon include in her taxable income?
9. In 20X1, Juan purchased medical insurance for himself, his wife Juanita, and his son Miguel, through his employer. The medical policy costed $15,000. Juan paid $1,000 toward the medical insurance premium, and his employer paid $14,000 toward the medical insurance premium. How much of the $14,000 that was paid by Juan's employer is included in Juan's taxable income for 20X1?
10. In 2022, Paul's primary residence was destroyed in a fire, in a federally declared disaster area. In 2022, after his house was destroyed, Paul had to live in a motel for 7 months. In 2022, Paul's insurance company paid Paul $200,000 to cover the cost of the motel and his other living expenses. How much of the $200,000 that was received by Paul is included in Paul's taxable income for 2022?
11. Eva's employer provided child care services at the worksite to the employees. In 2022, Eva took advantage of the benefit, and received child care services valued at $12,000 from her employer. Eva paid $0 for those child care services. In 2022, how much of the $12,000 benefit does Eva include in her Federal taxable income?
12. Jemma is employed by United Parcel Service. United Parcel Service reimburses adoption expenses incurred by their employees. In 2022, Jemma's Adjusted Gross Income is $100,000. In 2022, United Parcel Service reimbursed Jemma $15,000 for adoption expenses incurred by Jemma. How much of the $15,000 reimbursement is includable in Jemma's 2022 Federal taxable income?
13. Aliyah received $500 in interest from U.S. government bonds, and $1,000 of interest from State of California municipal bonds. Aliyah is a California resident. How much of the interest that she received is taxable income for Federal Income Tax and California Income Tax?
14. In 20X1, Yvonne received $5,000 in qualified transportation fringe benefits from her employer. How much of the $5,000 is included in her taxable income on her California Income Tax Return?
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts