Joanna received $55,800 compensation from her employer, the value of her stock in ABC company appreciated by $12,400 during the year (but she did not sell any of the stock), and she received $34,600 of life insurance proceeds from the death of her husband. What is the amount of Joanna's gross income from these items?

Question

Business

James Carson

15 April, 21:20

Joanna received $55,800 compensation from her employer, the value of her stock in ABC company appreciated by $12,400 during the year (but she did not sell any of the stock), and she received $34,600 of life insurance proceeds from the death of her husband. What is the amount of Joanna's gross income from these items?

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Answers (1)

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Georgia Barrett · Answer 1

Her total income recognizable is $90,400

Explanation:

The $55,800 received from her employer and $34,600 received from insurance proceeds are already earned and be recognized. However, $12,400 appreciation in her stock will not be recognized because this can only be earned and recognized only when the stocks are sold.

Hence, it is only $90,400 that will form Joanna's gross income.