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Accounting

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imageimageimage Tax Drill - Tax Benefit Rule Myrna and Geoffrey filed a joint tax return in 2022. Their AGI was $85,000, and itemized deductions were $26,000, which included $7,000 in state income tax. In 2023, they received a $1,800 refund of the state income taxes that they paid in 2022 . The standard deduction for married filing jointly in 2022 was $25,100. Under the tax benefit rule, $ of the state income tax refund is included in gross income in 2023. Holly was injured while working in a factory and received $12,000 as workers' compensation as she was unable to work because of the injury. Jill, who was self-employed, was also injured and unable to work. Jill collected $12,000 on an insurance policy she had purchased to replace her loss of income while she was unable to work. How much are Holly and Jill each required to include in their gross income? If an amount is zero, enter " 0 ". Holly: $ Jill: $ Leigh sued an overzealous bill collector and received the following settlement: a. Regarding Leigh's settlement, classify the following as either "Included in" or "Excluded from" her gross income. b. Assume that Leigh also collected $25,000 of damages for slander to her personal reputation caused by the bill collector misrepresenting the facts to Leigh's employer and other creditors. Is this $25,000 included in Leigh's gross income? Alfred owned a term life insurance policy at the time he was diagnosed as having a terminal illness. After paying $59,150 in premiums, he sold the policy to a company that is authorized by the state of South Carolina to purchase such policies. The company paid Alfred $414,050. When Alfred died 18 months later, the company collected the face amount of the policy, $496,860. As a result of the sale of the policy, how much is Alfred required to include in his gross income? Exercise 5-26 (Algorithmic) (LO. 1, 2) Jarrod receives a scholarship of $38,800 from East State University to be used to pursue a bachelor's degree. He spends $23,280 on tuition, $1,940 on books and supplies, $7,760 for room and board, and $5,820 for personal expenses. How much may Jarrod exclude from his gross income

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