Evaluate the pete''s gross income for calendar year

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Reference no: EM133285

Question :

1. Pete is a supervisory with Boeing, Inc. He accepted an assignment as President of Boeing's Pacific Operations, stationed in Tokyo. He arrived in Tokyo on June 30, 2013. Because of a family emergency, Pete had to return to the U.S.A. for an extended period of time. He traveled to the United Sates on November 1, 2013, and returned to Tokyo on 15^th December, 2013. After this absence, he was incessantly present in Japan until he returned to the U.S. on January 1, 2015. His salary in 2013 was $350,000. Evaluate the Pete's gross income for calendar year 2013?

A. $345,722

B. $313,099

C. $350,000

D. $252,400

E. None of the other answers is correct

F. $0

2. Penney had just won the Oscar for her portrayal of a waitress at the Cheesecake Factory in a low-budget independent film. To celebrate her accomplishment, she donated a painting (tax basis, $65,000 & FMV, $250,000) that had been in her family for years to the Cal State Art Museum. She understands that the museum would include her donated painting in an upcoming auction to raise funds for a new roof. She had AGI of $200,000. How much will Penney deduct in the year she made this contribution? Consider Penney's AGI can remain at $200,000 each year for the foreseeable future. Note, if more than one answer is correct, do what is best for Penney in the long-term.

A. $65,000

B. $0

C. $250,000

D. $100,000

E. $60,000

F. $40,000

G. None of the other answers is correct

3. Some years ago, Joyce bought series EE Savings Bonds with a cost of $20,000. The bonds are now worth $60,000. Joyce cashed in $30,000 worth of bonds (i.e., half the bonds) to pay for her son's first year in college. The $30,000 proceeds were used as follows-$22,500 tuition & books; $7,500 room & board. Before considering the $20,000 interest income from these bonds, Joyce's AGI on her head of household return was $50,000. How much, if any, of the interest income must be included in her gross income?

A. $0

B. None of the other answers is correct

C. $5,000

D. $9,500

E. $20,000

F. $14,000

Reference no: EM133285

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