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In 2021 Bonnie, a sole proprietor, loaned her employee, John, $10,000 to help him buy a car. In 2023, before he repaid the $10,000, Bonnie told John that she was “tearing up” the $10,000 note in recognition of his strong job performance. How should John treat the amount forgiven?

All of the following are capital assets with the exception of

Suppose I am currently in /home/bnnfm if I execute the script: ./changeDir.sh   What would be the output of the pwd command?

Kamala owns 1,000 shares of Orange Corporation. This year, Orange declared a 10% stock dividend. There was no option for shareholders to receive cash. When Kamala received 100 shares of Orange stock, it had a fair market value of $50 a share. How much income does Kamala have from the dividend?

A taxpayer sells an asset with a basis of $25,000 to an unrelated party for $28,000. The taxpayer has a realized gain of $3,000.

A basic principle of the law as defined in 1914 states that:

A taxpayer had the following income and losses in the current year:Salary$55,000Sold AT&T stock at a loss( 5,000)Lottery prize4,500 Gambling winnings8,000 Gambling losses( 5,000)What is the taxpayer’s adjusted gross income?

Michelle purchased her home for $350,000, and subsequently added a garage costing $25,000 and a new porch costing $5,000. Repairs to the home’s plumbing cost $1,000. The adjusted basis in the home is

Will exchanges a building with a basis of $35,000, and subject to a liability of $30,000, for land with a FMV of $50,000 owned by Jane. Jane takes the building subject to the liability. The amount realized by Will is

Norah, who gives music lessons, is a calendar-year taxpayer using the cash-basis accounting. On October 1 of this year, she received $1,200 for a one-year contract beginning on that date to provide 10 lessons. She gave 6 lessons this year. How much should Norah include in income this year?