Ted Crisp reports the following transactions for 2022: In exchange for providing consulting services Ted...

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Ted Crisp reports the following transactions for 2022: ♦ In exchange for providing consulting services Ted entered into an agreement to receive a bag of diamonds with a fair market value of $25,000. The diamonds are delivered to a warehouse in Ted's town on 12/20/2022 but he doesn't pick them up until 01/15/2023. On January 1st, Ted made a loan in the amount of $110,000 to his co-worker Lem so that Lem could purchase Bitcoin. He didn't charge Lem any interest on the loan. The applicable federal funds rate for 2022 was 10% and Lem had net investment income of $500. His employer, Veridian Dynamics, provided Ted with product discounts in the amount of $5,000. The discounts are offered to all employees. Ted purchases stock in Alibaba, Ltd for $20,000. The stock is worth $5,000 on 12/31/2022. Ted invests in an S-corp for a 10% ownership . . . interest. The S-corp earned total profits of $500,000 and distributed cash of $40,000 to Ted. Required: How much must Ted include in his 2022 gross income as a result of the above transactions? Ted Crisp reports the following transactions for 2022: ♦ In exchange for providing consulting services Ted entered into an agreement to receive a bag of diamonds with a fair market value of $25,000. The diamonds are delivered to a warehouse in Ted's town on 12/20/2022 but he doesn't pick them up until 01/15/2023. On January 1st, Ted made a loan in the amount of $110,000 to his co-worker Lem so that Lem could purchase Bitcoin. He didn't charge Lem any interest on the loan. The applicable federal funds rate for 2022 was 10% and Lem had net investment income of $500. His employer, Veridian Dynamics, provided Ted with product discounts in the amount of $5,000. The discounts are offered to all employees. Ted purchases stock in Alibaba, Ltd for $20,000. The stock is worth $5,000 on 12/31/2022. Ted invests in an S-corp for a 10% ownership . . . interest. The S-corp earned total profits of $500,000 and distributed cash of $40,000 to Ted. Required: How much must Ted include in his 2022 gross income as a result of the above transactions?

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