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State Whether Each of the Following Is Taxable or Nontaxable

question 81

Essay

State whether each of the following is taxable or nontaxable.
a.Susan won a jackpot of $50,000 gambling at a casino.
b.Sarah received a Christmas ham from her employer.
c.Jonathan won a car in a supermarket raffle valued at $25,000.
d.Gary received a scholarship for tuition of $5,000 a year.
e.Eric is given lodging valued at $1,000 a month on the oil rig where he is employed since it is impossible for Eric to go home during the period of time he is assigned to work on the rig.


Definitions:

Retained Earnings

The portion of a company's net income that is kept within the company rather than distributed to shareholders as dividends.

Target Capital Structure

The mix of debt, equity, and other securities a company aims to hold to finance its operations and investments.

Retained Earnings

Profits that a company keeps or retains rather than distributing to shareholders in the form of dividends, typically used for reinvestment.

Retained Earnings

The portion of a company's profit kept in the business after dividends are paid, which can be used for reinvestment in operations, debt reduction, or other purposes.

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