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Question 1: Andy and Sue are trying to calculate their gross income for their 2020 federal income tax. Which of the following should be included in their gross income?
(1) $50,000 car given to Sue by her father for her birthday.
(2) $100,000 borrowed from the bank for a home improvement
(3) $50,000 increase in the value of Tesla stock they owned at the beginning of 2020 and still owned at the end of 2020
(4) $5,000 worth of home repairs performed by a client of Andy's accounting service, that was done in exchange for Andy's accounting service.
As an investment advisor, you are developing an investment plan for a new client.
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