XYZ declared a $1 per share dividend on August 15. The date of record for the dividend was September 1(the stock began selling ex-dividend on September 2). The dividend was paid on September 10. Ellis is a cash-method taxpayer. Determine the economic income and the amount he must include in gross income under the following independent circumstances. a. Ellis bought 145 shares of XYZ stock on August 1 for $30 per share. Ellis received a $145 dividend on September 10. Ellis still owns the shares at year-end. Economic Income Amount included in Gross Income $ $ 145 145 b. Ellis bought 145 shares of XYZ stock on August 1 for $30 per share. Ellis sold his XYZ shares on September 5 for $33 per share. Ellis received the $145 dividend on September 10 (note that even though Ellis didn't own the stock on September 10, he still received the dividend because he was the shareholder on the record date) Economic Income Amount included in Gross incomo c. Ellis bought 145 shares of XYZ stock for $32 per share on August 20. Ellis received the $145 dividend on September 10. Ellis still owns the shares at year-end. Economic Income Amount included in Gross Income Gramps purchased a joint survivor annuity that pays $1,500 monthly over his remaining life and that of his wife, Gram. Gramps is 70 years old and Gram is 65 years old. Gramps paid $270,270 for the contract. How much income will Gramps recognize on the first payment? Income recognized