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14 November, 21:45

Marcy Tucker received the following items this year. Determine to what extent each item is included in her AGI. (Leave no cells blank - be sure to enter "0" wherever required.) A $25,000 cash gift from her parents. A $500 cash award from the local Chamber of Commerce for her winning entry in a contest to name a new public park. $8,000 alimony from her former husband, which he paid under the terms of their 2011 divorce decree. $100,000 cash inheritance from her grandfather.

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  1. 15 November, 00:46
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    Answer: A. $0

    B. $500

    C. $8,000

    D. $0

    Explanation:

    A. $0.

    The $25,000 is a cash gift from her parents which is a cash gift from relatives and so is not included in the AGI.

    B. $500

    The entire amount is included in her AGI as winnings from competitions are included in AGI calculations.

    C. $8,000

    Alimony payments are included in AGI calculations so the whole alimony figure is to be included.

    D. $0

    Cash inheritance is not to be included in AGI calculations for tax purposes so the entire figure of $100,000 should not be included.
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