a. Indicate whether the following income sources must be included or may be excluded from gross income and why? Insurance proceeds for loss of finger Prizes Embezzlement proceeds Interest on all savings deposits Child support Interest on Series HH bonds Receipt of alimony by divorced husband - divorce agreement executed in 2018 Income produced from property acquired by gift Gifts and inheritances Scholarship grants for tuition Compensation for injuries or sickness Interest income on bonds issued by State of Ohio Life insurance proceeds from a group plan

Solution:- Indication of the following income sources must be included or may be excluded from gross income as follows under:- 1)Insurance proceeds for loss of finger:-Reason:- Damages received from insurance for physical personal injuries are excluded from gross income (i.e. Loss of finger comes under personal injury) Conclusion:- Excluded 2)Prizes Reason:- prizes and winnings are includible in gross income except Conclusion:- Included 3)Embezzlement proceeds Reason:-Embezzled proceeds should be included in the embezzler's gross income in the year of the embezzlement. Conclusion:- Included As per the Bartley by guidelines I am able to answer 1st three subparts only... Thank you...

Answered: a. Indicate whether the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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a. Indicate whether the following income sources must be included or may be excluded from gross income and why?

Insurance proceeds for loss of finger
Prizes
Embezzlement proceeds
Interest on all savings deposits
Child support
Interest on Series HH bonds
Receipt of alimony by divorced husband - divorce agreement executed in 2018
Income produced from property acquired by gift
Gifts and inheritances
Scholarship grants for tuition
Compensation for injuries or sickness
Interest income on bonds issued by State of Ohio
Life insurance proceeds from a group plan

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