Arnold Was Employed During the First Six Months of the Year

question 94

Essay

Arnold was employed during the first six months of the year and earned a $86,000 salary.During the next 6 months,he collected $4,800 of unemployment compensation,borrowed $6,000 (using his personal residence as collateral),and withdrew $1,000 from his savings account (including $60,interest).His luck was not all bad,for in December he won $800 in the lottery on a $20 ticket.Because of his dire circumstances,Arnold's parents loaned him $10,000 (interest-free)on July 1 of the current year,when the Federal rate was 8%.Arnold did not repay the loan during the year and used the money for living expenses.Calculate Arnold's adjusted gross income for the year.

---

Definitions:

Niche Market

A specialized segment of the market for a particular kind of product or service, aimed at satisfying specific customer needs, not addressed by mainstream providers.

Pharmaceutical Companies

Companies engaged in the research, development, manufacture, and distribution of drugs and medications for medical diagnosis and treatments.

Diversified Market

A market characterized by a variety of products, services, or sectors, which reduces investment risk and capitalizes on different growth opportunities.

Hardware Store

A retail business that sells tools, building supplies, and household hardware for home improvement.