Problem $4-44($LO$.1,2,3)$

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:

Salary received

Loss from rental property $($$$150,000-$ $$160,000)$

Gross income

$$80,000$

$(10,000)$

$$70,000$

What are the correct amounts for each item used to determine Rusty's gross income?

If an amount is zero, enter $"0".$

Amount Included in

Gross Income

Salary from employer

Salary from wholly owned corporation

Dividends and interest from the investments

Interest from Swiss bank account

Rental loss incurred by wholly owned corporation

Gross income