Determine Hazel's gross income from the following receipts for the year: Gain on sale of Augusta County bonds $800 Interest on U. S. government savings bonds 400 Interest on state income tax refund 200 Interest on Augusta County bonds 700 Patronage dividend from Potato Growers Cooperative 350 The patronage dividend was received in March of the current year for amounts paid for her (nondeductible) garden and lawn supplies.

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Business

Alena Dorsey

14 October, 09:02

Determine Hazel's gross income from the following receipts for the year: Gain on sale of Augusta County bonds $800 Interest on U. S. government savings bonds 400 Interest on state income tax refund 200 Interest on Augusta County bonds 700 Patronage dividend from Potato Growers Cooperative 350 The patronage dividend was received in March of the current year for amounts paid for her (nondeductible) garden and lawn supplies.

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Sanaa Nicholson · Answer 1

Hazel's Income is $1,400

Explanation:

Gain on sale of Augusta County bonds $800

Interest on U. S. government savings bonds $400

Interest on state income tax refund $200

Interest on Augusta County bonds $700

Patronage dividend from Potato Growers Cooperative $350

Hazel's Income = Gain on Sale + Interest on U. S Govt + Interest on State Income Tax

Gain on Sale = $800

Interest on U. S Government Savings Bonds = $400

Interest on State Income Tax Refund = $200

So, Hazel's Income = $800 + $400 + $200

Hazel's Income = $1,400

While calculating Hazel's Income, all gross income items must be with an exception of the interest received on Augusta County bond dividend ($700).

And the patronage dividend will not included in gross income under the tax benefit rule; the reason for that is that because the cost were not deducted.

All other items are simply gross income not otherwise excluded.