Exam 3: Determining Gross Income

Put T for Taxable income or N for Nontaxable income beside each item below as it normally would be treated for tax purposes. -Scholarship funds used to pay room and board

Put T for Taxable income or N for Nontaxable income beside each item below as it normally would be treated for tax purposes. -Foreign income of a controlled foreign corporation that has never paid a dividend.

Put T for Taxable income or N for Nontaxable income beside each item below as it normally would be treated for tax purposes. -Stock dividend

Put T for Taxable income or N for Nontaxable income beside each item below as it normally would be treated for tax purposes. -Loan forgiven by father

Put T for Taxable income or N for Nontaxable income beside each item below as it normally would be treated for tax purposes. -Income earned in year 2 on a long-term contract using the completed contract method,

Put T for Taxable income or N for Nontaxable income beside each item below as it normally would be treated for tax purposes. -Settlement for loss of finger in industrial accident

Bryan, age 66, is retired. His wife, Rebecca, age 64, still works part-time. They have income from the following sources: Rebecca's salary \ 10,000 Bryan's pension (all contributions made by his employer) 15,000 Bryan's social security benefits 5,000 Interest income from State of Montana bonds 1,000 Dividend income from Ford Motor Co. stock 500 Lottery prize 50 What is their joint gross income?

Put T for Taxable income or N for Nontaxable income beside each item below as it normally would be treated for tax purposes. -Income from employer-financed annuity

Put T for Taxable income or N for Nontaxable income beside each item below as it normally would be treated for tax purposes. -Cash dividend

Put T for Taxable income or N for Nontaxable income beside each item below as it normally would be treated for tax purposes. -Punitive damages received