1- Marco provides all of the support for his mother, Sienna, who lives by herself in an apartment in Fort Lauderdale. Marco pays the rent and other expenses for the apartment and properly claims his mother as a dependent. Tammy provides over one-half the support for her 18 year old brother, Dan. He earned $4,200 in 2019 working at a fast food restaurant and is saving his money to attend college in 2020. Dan lives in Tammys home. Juans wife left him late in December of 2018. No legal action was taken and Juan has not heard from her in 2019. Juan supported his 6-year-old son, who lived with him throughout 2019.

Which of the following taxpayers may file as a head of household in 2019?

a. Marco only

b. Tammy only

c. Juan only

d. Marco and Juan only

e. Marco, Tammy, and Juan

2- Debbie is age 67 and unmarried and her only sources of income are $200,000 in taxable interest and $20,000 of Social Security benefits. Debbies adjusted gross income for the year is:

a. $220,000.

b. $217,000.

c. $203,000.

d. $200,000.

e. None of these.

3- The Blue Utilities Company paid Sue $2,000 for the right to lay an underground electric cable across her property anytime in the future.

a. Sue must recognize $2,000 gross income in the current year if the company did not install the cable during the year.

b. Sue is not required to recognize gross income from the receipt of the funds, but she must reduce her cost basis in the land by $2,000.

c. Sue must recognize $2,000 gross income in the current year regardless of whether the company installed the cable during the year.

d. Sue must recognize $2,000 gross income in the current year, and when the cable is installed, she must reduce her cost basis in the land by $2,000.

e. None of these.

Please answer all 3 questions. Thank you very much!