Noor Patel has had a busy year! She decided to take a cross-country adventure. Along the way, she won a new car on The Price Is Right (valued at $14,600) and $500 on a scratch-off lottery ticket (the first time she ever played). She also signed up for a credit card to start the trip and was given a sign-up bonus of $100. How much from these will she have to include in her federal taxable income?

Noor Patel has had a busy year! She decided to take a cross-country adventure. Along the way, she won a new car on The Price Is Right (valued at $14,600) and $500 on a scratch-off lottery ticket (the first time she ever played). She also signed up for a credit card to start the trip and was given a sign-up bonus of $100. How much from these will she have to include in her federal taxable income?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 34P

See similar textbooks

Similar questions

As soon as she graduated from college, Kay began planning for her retirement. Her plans were to deposit $500 semiannually into an IRA (a retirement fund) beginning six months after graduation and continuing until the day she retired, which she expected to be 30 years later. Today is the day Kay retires. She just made the last $500 deposit into her retirement fund, and now she wants to know how much she has accumulated for her retirement. The fund earned 10 percent compounded semiannually since it was established. a. Compute the balance of the retirement fund assuming all the payments were made on time. b. Although Kay was able to make all of the $500 deposits she planned, 10 years ago she had to withdraw $10,000 from the fund to pay some medical bills incurred by her mother. Compute the balance in the retirement fund based on this information.
A mother earned $12500.00 from royalties on her cookbook. She set aside 20% of this for a down payment on a new home. The balance will be used for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) that earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $600.00, how much money was invested at each rate?
Isabel Lopez from Lewiston, Idaho, who is 19 years old, recently received an inheritance of $55,000 from her grandmother's estate. She plans to use the money for the down payment on a home in ten years when she finishes her education. Right now the funds are in a savings account paying 2.0 percent APY. How much would Isabel have in ten years if instead she purchased a ten-year CD paying 6.0 percent? Round your answer to the nearest dollar.
a mother earned $15000.00 from royalties on her cookbook. She set aside 20% of this for a down payment for a new home. The balance will be used for her son's future education. She invested a portion of the money in a bank certificate of a deposit (cd account) that earns 4% and the remainder in a savings bond that earns 7%. IF the total interest earned after one year is $720.00, how much money was invested at each rate?
Kamakea is several years into college and wants to save up money for a down payment for her first house. She currently has $8,000 for her house fund and needs to decide what to do with it. What is the best choice for Kamakea? Purchase a 10-year bond Put the money in a savings account Take out a 5-year certificate of deposit Keep the money under her mattress and add a little bit to it regularly
Mrs. Jillian has just turned 16 years old and has her mind set on buying a new car by the time she is 20 years old. To achieve this goal she decides to save as much money as she can over this period. She can afford to save $440 per month. She regularly places the money into an annuity that pays 5.5% per annum compounded monthly. a) Show that she will have $ 23 563.25 to spend. b) Determine the amount of interest she has earned over this time.
"Vicky has a comprehensive auto insurance policy with a $4,400 deductible, with a 100/0 copay and a $4,400 out- of-pocket limit. Last week, their car was crushed by a falling tree. This cost them $5,800 to replace the car. How much of this expense will they havve to pay out of pocket?"
Last year Jane's grandmother offered to put enough money into a savings account to generate $5000 in interest this year to help pay Jane's expenses at college. (a) Identify the symbols, and (b) calculate the amount that had to be deposited exactly 1 year ago to earn $5000 in interest now, if the rate of return is 6% per year.
A mother earned $18750.00 from royalties on her cookbook. She set aside 20% of this for a down payment on a new home. The balance will be used for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) that earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $900.00, how much money was invested at each rate? How much money was invested in the CD account? (Round to the nearest cent.) GILB
A recent high school graduate received $900 in gifts of cash from friends and relatives. In addition, she received three scholarships in the amounts of $350, $800, and $1300. If she takes all her gift and scholarship money and invests it in a 24-month CD paying 4% interest compounded daily (use n=360), how much will the graduate have when she cashes in the CD at the end of the 24-months? The graduate will have how much money when she cashes in the CD.
Kate deposited P5,000 to her bank account every year when she was in high school for four years to prepare for her college degree. She took an engineering course and since then, she stopped depositing to her bank account. Right after graduation (she graduated on time), she got a job that pays P250,000 a year. If she continues to deposit to the same bank account P50,000 every year for 10 years, calculate the future worth after 30 years if the deposits are made at the end of each year and the bank pays 2% interest per year. *Please show your correct and complete solutions to this problem. Thank you!*
Maria is a wedding planner. She purchases a laserjet printer for invitations, save-the-date postcards, etc. The laserjet costs $400. The laserjet has an expected life of 5 years; at the end of which time Maria expects a rebate of $20.00 when she turns in her old laserjet and purchases a new one. Maria uses the sum-of-the-years'-digits method to calculate depreciation.What is the annual depreciation in the first year?$What is the book value at the end of the second year?$What is the accumulated depreciation by the end of year 3?$