Hazel, a Solvent Individual but a Recovering Alcoholic, Embezzled $6,000

question 83

Multiple Choice

Hazel, a solvent individual but a recovering alcoholic, embezzled $6,000 from her employer. In the same year that she embezzled the funds, her employer discovered the theft. Her employer did not fire her and told her she did not have to repay the $6,000 if she would attend Alcoholics Anonymous. Hazel met the conditions and her employer canceled the debt.

• A)Hazel did not realize any income because her employer made a gift to her.
• B)Hazel must include $6,000 in gross income from discharge of indebtedness.
• C)Hazel must include $6,000 in gross income under the tax benefit rule.
• D)Hazel may exclude the $6,000 from gross income because the debt never existed.
• E)None of these.

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Definitions:

Cyberaggression

The act of using digital platforms to direct harmful or hostile behavior towards others.

Cyberbullying

The use of digital platforms like social media, messaging services, and websites to harass, threaten, or embarrass individuals.

Keystroke Logging

The process of recording the keys struck on a keyboard, typically covertly, so that the person using the keyboard is unaware that their actions are being monitored.

Socially Conscientious

Having an awareness of and concern for the problems and injustices of society.