Problem 7: Exclusions from income Annie Wilkes is a single taxpayer who reports the following transactions during 2022: • At her part time job she uses the gym on the company premises that is available to all employees. The total value of the gym membership is $1,500 She receives $700 a month from an annuity she purchased on 1/1/2020 for $50,000 when she was 35 years old (which is also the age she began receiving payments). The annuity will pay her for the rest of her life. She received $20,000 from the University of Kansas. Of this, $2,000 represented a scholarship to cover tuition, $17,000 a stipend to assist with living expenses, and 1,000 for book purchases. • She received a refund of $2,000 for a contribution to her health savings account (HSA) made in 2021. Required: How much of the above transactions will be excluded from Annie's income for 2022?

Problem 7: Exclusions from income Annie Wilkes is a single taxpayer who reports the following transactions during 2022: • At her part time job she uses the gym on the company premises that is available to all employees. The total value of the gym membership is $1,500 She receives $700 a month from an annuity she purchased on 1/1/2020 for $50,000 when she was 35 years old (which is also the age she began receiving payments). The annuity will pay her for the rest of her life. She received $20,000 from the University of Kansas. Of this, $2,000 represented a scholarship to cover tuition, $17,000 a stipend to assist with living expenses, and 1,000 for book purchases. • She received a refund of $2,000 for a contribution to her health savings account (HSA) made in 2021. Required: How much of the above transactions will be excluded from Annie's income for 2022?

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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