Question

What is Tom’s total amount of gross income if: 1) he earned $100 in wages; 2)...

What is Tom’s total amount of gross income if: 1) he earned $100 in wages; 2) his credit card forgave his credit card balance of $200; 3) he received a $300 cash gift from his aunt; and 4) and received $600 in alimony from his former spouse?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Tom's total amount of gross income = wages earned + credit card forgave balance = $100 + $200 = $300

Note - IRS generally treats forgiven and canceled debts like income.

  • Cash gifts aren't considered taxable income. Good news if you're the recipient—any money given to you as a gift doesn't count as income on your taxes, so you don't owe anything on it.
  • Alimony and separate maintenance payments you receive under such an agreement are not included in your gross income.

Hope it helps ?

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. 1. What is Mary’s total gross income if as a result of suing her employer...
1. 1. What is Mary’s total gross income if as a result of suing her employer for her injuries she sustained on the job she received: 1) $100 in punitive damages; 2) $200 for loss of income; and 3) $300 for medical expenses? 2. Which one of the following would be included in gross income for federal tax purposes? a)Tom and Marty received pots and pans worth $200 as a wedding present b)Madison received insurance proceeds of $500 to replace...
Tom’s income is $600. Assume that he consumes only two goods, watching basketball games and football...
Tom’s income is $600. Assume that he consumes only two goods, watching basketball games and football games. Tom had the same Total Utility for the following five options (i.e. he is indifferent between these options). Options # Basketball games #Football games 1 100 10 2 60 15 3 30 30 4 15 50 5 10 90 Assume that the price of a basketball game is $6, and the price of a football game is $15. Draw Tom’s indifference curve along...
Tom’s income is $600. Assume that he consumes only two goods, watching basketball games and football...
Tom’s income is $600. Assume that he consumes only two goods, watching basketball games and football games. Tom had the same Total Utility for the following five options (i.e. he is indifferent between these options). Now assume that basketball game ticket cost $10 and football game ticket cost $10. Draw indifference curve and budget constraints and find out his utility maximizing combination. Options # Basketball games #Football games 1 100 10 2 60 15 3 30 30 4 15 50...
1. Marc and Michelle are married and earned salaries this year of $68,000 and $15,000, respectively....
1. Marc and Michelle are married and earned salaries this year of $68,000 and $15,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $3,000 to a qualified Individual Retirement Account, and Marc paid alimony to a prior spouse in the amount of $1,500 (2017 divorce).  Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to...
Jamie Lee Jackson, age 26, is in her last semester of college, and graduation day is...
Jamie Lee Jackson, age 26, is in her last semester of college, and graduation day is just around the corner! It is the time of year again when Jamie Lee must file her annual federal income taxes. Last year, she received an increase in salary from the bakery, which brought her gross monthly earnings to $2,550, and she also opened up an IRA, to which she contributed $300. Her savings accounts earn 2 percent interest per year, and she also...
om is single and 68 years old. He has excellent eyesight. In 2019, Tom earned W-2...
om is single and 68 years old. He has excellent eyesight. In 2019, Tom earned W-2 wages of $160,398 from his full-time job at Six Minutes, ABS, Inc. He also received tips in that year of $700 by playing requests on the marimba. Tom did not receive any Social Security benefits. Tom paid alimony of $7,989 to his ex-wife (pursuant to their 2015 written divorce agreement.) Tom had few allowable itemized deductions on Schedule A, so he claimed the standard...
Jon, age 45, had adjusted gross income of $26000 in 2017.During the year ,he incurred and...
Jon, age 45, had adjusted gross income of $26000 in 2017.During the year ,he incurred and paid the following medical expenses. Grab and medicines premium $300 Health insurance premiums $750 Doctors' fees 2250 eyeglasses 75. job received $900 in 2017 as a reimbursement for a portion of the doctors' fees.if Jon were to itemize his deductions, what would be his allowable medical deduction after the adjusted gross income limitation is taken into account ? 1. $ 0 2. $425 3.$600...
Marc and Michelle are married and earned salaries this year of $69,600 and $14,100, respectively. In...
Marc and Michelle are married and earned salaries this year of $69,600 and $14,100, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $1,200 from corporate bonds. Marc contributed $3,200 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $2,200. Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000...
In each independent item below, assume that a single taxpayer earned $30,000 in W-2 income. Show...
In each independent item below, assume that a single taxpayer earned $30,000 in W-2 income. Show the appropriate amount that should appear under each heading. More than one option may be selected Item Amount Include in Gross Income Exclude form Gross Income Deduction for AGI Deduction from AGI Appears on Schedule A Appears on Schedule B Appears on Schedule D Interest from Savings Account $60 Dividends from stock investment $500 Bad Debt from an Unpaid Loan $6,000 Donation of automobile...
Checkpay, Inc - Starting Condensed Balance Sheet (in $000s) Net working capital $100 Fixed assets 100...
Checkpay, Inc - Starting Condensed Balance Sheet (in $000s) Net working capital $100 Fixed assets 100 Total Assets $200 Bank loan $100 Equity 100 Total Debt and Equity $200 Checkpay, Inc. - Forecasted Condensed Income Statements (in $000s) Year 1 Year 2 Year 3 Year 4 Revenues $100 $200 $300 $450 Expenses 170 230 300 360 Net income $–70 $–30 $ 0 $ 90 Returning to Checkpay, Inc. in Problem 10, Johnny returns from the bank very disappointed. It seems...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT