LO.2 Ed, an employee of the Natural Color Company, suffered from a rare disease that was very expensive to treat. The local media ran several stories about Ed's problems, and the family created a website that generated more than $10,000 in gifts from individuals to help pay the medical bills. Ed's employer provided hospital and medical insurance for its employees, but the policy did not cover Ed's illness. When it became apparent that Ed could not pay all of his medical expenses, the hospital canceled the $25,000 Ed owed at the time of his death. After Ed's death, his former employer paid Ed's widow $12,000 in "her time of need." Ed's widow also collected $50,000 on a group term life insurance policy paid for by Ed's employer. What are Ed's and his widow's gross income?
LO.2 Ed, an employee of the Natural Color Company, suffered from a rare disease that was very expensive to treat. The local media ran several stories about Ed's problems, and the family created a website that generated more than $10,000 in gifts from individuals to help pay the medical bills. Ed's employer provided hospital and medical insurance for its employees, but the policy did not cover Ed's illness. When it became apparent that Ed could not pay all of his medical expenses, the hospital canceled the $25,000 Ed owed at the time of his death. After Ed's death, his former employer paid Ed's widow $12,000 in "her time of need." Ed's widow also collected $50,000 on a group term life insurance policy paid for by Ed's employer. What are Ed's and his widow's gross income?
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 27P
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Please use Microsoft excel to solve the problem.
Transcribed Image Text:LO.2 Ed, an employee of the Natural Color Company, suffered from a rare disease that was very expensive to treat.
The local media ran several stories about Ed's problems, and the family created a website that generated more than
$10,000 in gifts from individuals to help pay the medical bills. Ed's employer provided hospital and medical insurance for
its employees, but the policy did not cover Ed's illness. When it became apparent that Ed could not pay all of his medical
expenses, the hospital canceled the $25,000 Ed owed at the time of his death. After Ed's death, his former employer paid
Ed's widow $12,000 in "her time of need." Ed's widow also collected $50,000 on a group term life insurance policy paid
for by Ed's employer. What are Ed's and his widow's gross income?
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