For Each of the Following Situations,determine the Amount of Gross

question 124

Essay

For each of the following situations,determine the amount of gross income that the taxpayer should recognize.Explain why any amounts are excluded from gross income.
a.Gary is an employee of G&K Electronics.G&K allows all employees to buy goods from inventory at a 20% discount.Gary purchases a television under the discount plan for $800.The television,which cost G&K $700,normally sells for $1,000.
b.Carolyn receives an $8,000 National Merit Scholarship and a $2,000 Honors at Entrance Scholarship to attend State Tech.The scholarships were given based on national testing scores and high school grades,and require no future services on Carolyn's part.Tuition and other fees are $6,500 per year at State Tech.Carolyn also pays $6,000 for room and board in University housing.
c.Donnie's employer provides free parking to certain management level employees.In 2013,Donnie's employer provided parking cost his employer $3,180.
d.Gretchen receives $5,000 of 6% City of Orlando bonds as a graduation present from her boyfriend on May 1.The bonds pay interest on June 30 and December 31.Gretchen sells the bonds at a gain of $750 in August.

Differentiate between agency policies and professional social work values.

Evaluate the ethical dimensions of inter-professional relationships and mentorship within social work settings.

Define and differentiate between confidentiality, relative confidentiality, and privilege in the context of social work.

Understand the concept and implications of whistle-blowing in social work.

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Definitions:

Cost of Goods Manufactured

The total production cost of goods completed during an accounting period.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, usually comprising the balance sheet, income statement, and cash flow statement.

Financial Accounting

Financial Accounting is the field focused on the collection, analysis, and reporting of financial transactions pertaining to a business, resulting in the production of financial statements.

Managerial Accounting

The practice of identifying, measuring, analyzing, and interpreting financial information for the pursuit of an organization's goals.