Problem $4-40($LO$.3)$

Rusty has been experiencing serious financial problems. His annual salary was $$100,000,$ but a creditor garnished his salary for $$20,000[$i$.$e$.,$ the employer paid the creditor $($rather than Rusty$)$ the $$20,000].$ To prevent creditors from attaching his investments, Rusty gave his investments to his $21-$year$-$old daughter, Rebecca. Rebecca received $$5,000$ in dividends and interest from the investments during the year. Rusty transferred some cash to a Swiss bank account that paid him $$6,000$ interest during the year. Rusty did not withdraw the interest from the Swiss bank account. Rusty also hid some of his assets in his wholly owned corporation that received $$150,000$ rent income but had $$160,000$ in related expenses, including a $$20,000$ salary paid to Rusty. Rusty reasons that his gross income should be computed as follows:

$\backslash$table$[[$Salary received,$$80,000$