Indicate whether each of the items listed below would be included (I) in or excluded (E) from gross income for the 2019 tax year.
______ a. Welfare payments
______ b. Commissions
______ c. Hobby income
______d. Scholarships for room and board
______ e. $ 300 set of golf clubs, an employee award for length of service
______ f. Severance pay
______ g. Ordinary dividend of $ 50
______ h. Accident insurance proceeds received for personal bodily injury
______ i. Inheritances
______ j. Gifts
______ k. Tips and gratuities
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- Determine from the tax table in Appendix A the amount of the income tax for each of the following taxpayers for 2019:arrow_forwardDuring 2021, Robert has the following cash receipts: Wages: $50,000 Interest from City of Jackson Bonds: $500 Worker's compensation: $2,000 What is Robert’s 2021 Gross Income?arrow_forwardHow do the all events and economic performance requirements apply to the following transactions by an accrual basis taxpayer? a. The company guarantees its products for six months. At the end of 2019, customers had made valid claims for 600,000 that were not paid until 2020. Also, the company estimates that another 400,000 in claims from 2019 sales will be filed and paid in 2020. b. The accrual basis taxpayer reported 200,000 in corporate taxable income for 2019. The state income tax rate was 6%. The corporation paid 7,000 in estimated state income taxes in 2019 and paid 2,000 on 2018 state income taxes when it filed its 2018 state income tax return in March 2019. The company filed its 2019 state income tax return in March 2020 and paid the remaining 5,000 of its 2019 state income tax liability. c. An employee was involved in an accident while making a sales call. The company paid the injured victim 15,000 in 2019 and agreed to pay the victim 15,000 a year for the next nine years.arrow_forward