Edgar Had the Following Transactions for 2017 What Is Edgar's AGI for 2017

question 128

Essay

Edgar had the following transactions for 2017: $\begin{array}{llr} \text { Salary } &&\$80,000\\ \text { Alimony paid } &&(4,000)\\ \text { Recovery from car accident-} &\\ \text { Personal injury damages } &\$40,000\\ \text { Punitive damages} &\underline{70,000}&110,000\\ \text { Gift from parents } &&20,000\\ \text { Property sales-} &\\ \text { Loss on sale of boat (used for pleasure and owned 4 years) } &(\$4,000)\\ \text {Gain on sale of ADM stock (held for 10 months as an investment) } &\underline{4,000}&(-0-)\\\end{array}$
What is Edgar's AGI for 2017?

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Definitions:

FX Swaps

A financial agreement where two parties exchange currencies at a specified rate for a certain period, often used to hedge currency risks.

Spot Transaction

A financial contract for the immediate purchase or sale of a commodity, currency, or other asset, with delivery taking place immediately or within a short period.

Forward Transaction

A financial agreement to buy or sell an asset at a specified future date and price.

Gross Domestic Product

The total monetary value of all goods and services produced within a country's borders in a specific time period, commonly used as a measure of economic performance.