2. John sold a house during 2022. He owned the home, and used it as his primary residence, for the past 25 years. He purchased the home for $125,000 and sold it for $645,000. John is married and files a joint return with his spouse. How much gain must John include in his gross income related to this sale?Group of answer choices$0$20,000$520,000$145,000 3. Grace works for Tetra Tech. She is currently working towards her MBA degree. Tetra Tech gave Grace $10,000 during 2022 as a fringe benefit to cover the cost of her MBA tuition. How much of this benefit must Grace include in her gross income?Group of answer choices$0$4,750$5,250$10,000

When you buy any assets than prices goes up or down. Now when you prices goes up and you sell assets…

Answered: John sold a house during 2022. He owned…

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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2. John sold a house during 2022. He owned the home, and used it as his primary residence, for the past 25 years. He purchased the home for $125,000 and sold it for $645,000. John is married and files a joint return with his spouse. How much gain must John include in his gross income related to this sale?

Group of answer choices

$20,000

$520,000

$145,000

3. Grace works for Tetra Tech. She is currently working towards her MBA degree. Tetra Tech gave Grace $10,000 during 2022 as a fringe benefit to cover the cost of her MBA tuition. How much of this benefit must Grace include in her gross income?

Group of answer choices

$4,750

$5,250

$10,000

Definition Definition Benefits in addition to compensation that companies give to their employees. Fringe benefits can boost morale and productivity and keep employees motivated. Companies often use fringe benefits as a competitive advantage to recruit and retain employees. Examples of fringe benefits include pensions, vacation time, tuition reimbursement, free or subsidized meals, and gym memberships.

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