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

question 127

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. Gary is an employee of G&K Electronics. G&K allows all employees to buy goods from
a. 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.
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
b. 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 2014, Donnie's employer provided parking cost his employer $3,180.
Gretchen receives $5,000 of 6% City of Orlando bonds as a graduation present from her
d. 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.

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Definitions:

Lower Extremity Circulation

The flow of blood through the arteries and veins of the lower limbs, vital for tissue health and function.

Foot Cradle

A device placed at the end of the bed to keep the bedclothes off the feet, preventing discomfort and promoting better healing of foot injuries.

Turned

To change direction or position, often used in the context of rotating a patient's body in a medical or care setting to prevent pressure sores.

Nursing Diagnosis

A clinical judgment about individual, family, or community responses to actual or potential health problems/life processes, forming the basis for selection of nursing interventions.