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

question 55

Multiple Choice

During the year,Cathy received the following: • Dividends of $4,000 from Lindsay Corporation.Cathy's father owns the stock and directed the corporation to send the dividends to Cathy.
• A car worth $30,000 for being the 1,000th 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:

Objective Fact

Information verified through observation or measurement, independent of personal feelings or opinions.

Voluntary Act

An action taken by an individual based on free will and conscious decision.

Relativist View

A perspective that holds beliefs, values, ethics, and moral standards as relative to individuals or cultures, denying universal standards.

Deviance Principle

A concept related to behavior that significantly violates societal or group norms.