Determine the taxpayer's gross income for tax purposes in each of the following situations: If an amount is zero, enter "0".     Gross Income a.   Deb, a cash basis taxpayer, traded a corporate bond with accrued interest of $300 for corporate stock with a fair market value of $12,000 at the time of the exchange. Deb's cost of the bond was $10,000. The value of the stock had decreased to $11,000 by the end of the year. $fill in the blank 1       b.   Deb needed $10,000 to make a down payment on her house. She instructed her broker to sell some stock to raise the $10,000. Deb's cost of the stock was $3,000. Based on her broker's advice, instead of selling the stock, she borrowed the $10,000 using the stock as collateral for the debt. $fill in the blank 2       c.   Deb's boss gave her two tickets to the Rabid Rabbits rock concert because she met her sales quota. At the time she received the tickets, each ticket had a face price of $200 and was selling on eBay for $300. On the date of the concert, the tickets were selling for $250 each. Deb and her son attended the concert.

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 30P
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Determine the taxpayer's gross income for tax purposes in each of the following situations:

If an amount is zero, enter "0".

    Gross Income
a.   Deb, a cash basis taxpayer, traded a corporate bond with accrued interest of $300 for
corporate stock with a fair market value of $12,000 at the time of the exchange. Deb's cost of
the bond was $10,000. The value of the stock had decreased to $11,000 by the end of the
year.
$fill in the blank 1
     
b.   Deb needed $10,000 to make a down payment on her house. She instructed her broker to sell
some stock to raise the $10,000. Deb's cost of the stock was $3,000. Based on her broker's
advice, instead of selling the stock, she borrowed the $10,000 using the stock as collateral for
the debt.
$fill in the blank 2
     
c.   Deb's boss gave her two tickets to the Rabid Rabbits rock concert because she met her sales
quota. At the time she received the tickets, each ticket had a face price of $200 and was selling
on eBay for $300. On the date of the concert, the tickets were selling for $250 each. Deb and
her son attended the concert.



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