Sam died on January 15, (5 years ago) and left his wife, Terry, an insurance policy with a face value of $100,000. Terry elected to receive the proceeds over a ten-year period ($10,000 plus interest each year). This year Terry receives $11,500 ($10,000 proceeds plus $1,500 interest) from the insura...
ACC 105 - Chapter 2 || Already Graded A+.
Sam died on January 15, (5 years ago) and left his wife, Terry, an insurance policy with a face
value of $100,000. Terry elected to receive the proceeds over a ten-year period ($10,000 plus
interest each year). This year Terry receives $11,500 ($10,000 proceeds plus $1,500 interest)
from the insurance company. How much income must Terry report from this payment? correct
answers 1500
Sam, a calendar year taxpayer, purchased an annuity contract for $3,600 that would pay him
$120 a month beginning on January 1, current tax year. His expected return under the contract
based on his life expectancy is $10,800. Assuming Sam received a total of $1,440 in payments
during the current tax year, how much of this annuity income is included in Sam's gross income
for the current tax year, using the general rule? correct answers 960
In the current tax year, Uriah received the following interest payments: Interest of $400 on an
overpayment of prior year's Federal Income taxes; Interest of $ 300 on an award received for
money lost due to fraud by his investment advisor in 2000; Interest of $1,500 on municipal
bonds; Interest of $1,000 on United States savings bonds (Series HH) What amount, if any,
should Uriah report as taxable interest income on his current year's individual income tax return?
correct answers 1700
Seymore named his wife, Penelope, the beneficiary of a $100,000 insurance policy on his life.
The policy provided that, upon his death, the proceeds would be paid at a rate of $4,000 per year
plus interest over a 25-year period. Seymore died June 25, (prior year) and in this current tax
year Penelope received a payment of $5,200 from the insurance company. What amount should
she include in her gross income for the current tax year? correct answers 1200
Mary received the following items during the current tax year: Christmas bonus from her
employer $500 Christmas gift from her father $35 Prize won in a radio show contest $100 What
is the total amount of the above items that must be included in Mary's gross income? correct
answers 600
Which of the following amounts are taxable income to the recipient except: correct answers Gifts
Arthur, age 19, is a full-time student at Gordon College and is a candidate for a bachelor's
degree. During the current tax year he received the following amounts: Tuition scholarship
$2,400; Loan from college financial aid office $1,000; Cash support from parents $2,000;
Ordinary cash dividend $500; and Cash prize awarded in contest $300. What is his adjusted
gross income for the current tax year? correct answers 800
Jerry and Sally were divorced under an agreement executed July 1, (current year). The terms of
the agreement provide that Jerry will transfer to Sally his interest in a rental house worth
$250,000 with a tax basis to Jerry of $80,000. What is the amount of the gain that must be
recognized by Jerry on the transfer of the property and what is Sally's tax basis in the property
after the transfer, respectively. correct answers $0 and $80,000
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
