Determine Whether the Taxpayer Has Realized Income in Each of the Following

question 41

Essay

Determine whether the taxpayer has realized income in each of the following cases.Explain why there has (or has not)been a realization and when the income will be realized if there is not a current realization.
a.Jaime appears on a TV game show in December 2017.She wins $25,000 in cash and a new sailboat worth $12,000.She receives a check for the cash she won on December 28,2017.However,the sailboat was not ready for her to pick up until the following February.
b.Barry owns 30% of Thurman Corporation.Thurman,an S corporation,reports a taxable income of $2,000,000 and pays cash dividends of $1,000,000 in 2017.
c.Yolanda signs a contract to be Athletic Director of Higgins University for 5 years.Upon signing the contract she receives a $50,000 bonus.The terms of the contract provide that Yolanda will have to repay the bonus if she terminates her relationship with the University before the end of the contract.
d.Randy was arrested for reckless driving.Because it was his third offense,his fine was set at $1,000.Randy's employer needed Randy at work,so he paid the fine.He told Randy that he would not have to repay the $1,000 if he was not arrested again.

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Definitions:

Film Noir

Literally, “black film”; a French term for American films from the 1940s and 1950s that share certain “dark” characteristics, such as a sordid urban atmosphere, low-key lighting, night-for-night shooting, shady characters, and labyrinthine plots dealing with violent crime.

Labyrinthine Plots

Extremely complex and convoluted storylines that resemble a labyrinth, often requiring significant effort from the audience to understand.

Preston Sturges

A celebrated American filmmaker and screenwriter known for his sophisticated comedies in the 1940s.

21st-Century

The current century, spanning from 2001 to 2100, characterized by rapid technological advancements, globalization, and significant social and environmental changes.