During the Year,Cathy Received the Following: • Dividends of $4,000

question 44

Multiple Choice

During the year,Cathy received the following: • Dividends of $4,000 from Lindsay Corporation.Cathy's father owned the stock and directed the corporation to send the dividends to Cathy.
• A car worth $30,000 for being the 1,000^th customer at a car dealership.
• $5,500 cash gift from her uncle.
• $10,000 inheritance from her grandmother.
What amount must Cathy include in gross income?

• A)$30,000
• B)$34,000
• C)$39,500
• D)$49,500

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Definitions:

Argon

A noble gas element with atomic number 18, colorless and odorless, used in lighting and welding due to its inertness.

Baking Soda

A common name for sodium bicarbonate, a chemical compound used in baking as a leavening agent.

Elemental Symbol

A one or two-letter abbreviation derived from the element's name in English or Latin, representing a chemical element on the periodic table.

Platinum

A chemical element with the symbol Pt and atomic number 78, a dense, malleable, ductile, highly unreactive, precious, silverish-white transition metal.