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For each of the following independent situations, determine the amount, if any, that the taxpayer must recognize in $2024.$

a$.$ Goofy is a patient in a nursing home for $60$ days in $2024.$ While in the nursing home, he incurs total costs of $$15,650.$ Medicare pays $$8,000$ of the costs. Goofy receives $$18,730$ from his long$-$term care insurance policy, which pays while he is in the facility. Assume that the Federal daily excludible amount for $2024$ is $$410.$ Of the $$18,730,$ what amount, if any, will Goofy include in his gross income?

b$.$ Olaf, a generous individual, made the following interest$-$free loans during the year. Assume that tax avoidance is not a principal purpose of any of the loans. Assume that the relevant Federal tax rate is $7\%$ and that the loans were outstanding for just the last six months of the year.

Borrower

Amount Borrower$$s Net

Investment Income

Purpose of Loan

Elsa $$45,000$ $$950$ Purchase stock

Anna $$103,825$ $$0$ Purchase a residence

Considering the effects of the imputed interest rules on these transactions, compute Olaf$$s gross income from each of these loans:

$$ Elsa

$$ Anna

c$.$ Pluto, a police officer, was injured in the line of duty. He received the following during $2024$:

Salary $ $48,750$

Unemployment compensation $3,200$

Compensatory damages for physical injury $19,500$

Punitive damages for physical injury $17,000$

Cash reward for preventing a home burglary $6,500$

Workers$$ compensation $5,000$

What is the amount, if any, that will be included in gross income in $2024?$

d$.$ Kristoff delivers pizzas for Disney Pizza Shop. On Sunday, December $31,2023,$ Kristoff made several deliveries and collected $$385$ from customers. However, Kristoff forgot to turn in the $$385$ of proceeds to his manager at Disney Pizza Shop until Tuesday, January $2,2024.$

$$ How much, if any, will Disney Pizza Shop include in its gross income in $2023?$

$$ How much, if any, will Disney Pizza Shop include in its gross income in $2024?$

e$.$ Mighty Mouse received a scholarship of $$26,500$ from Disney University to be used to pursue a bachelor$$s degree. He spends $$13,400$ for tuition, $$2,500$ on books and supplies, $$10,000$ for room and board, and $$600$ on personal expenses. How much, if any, will Mighty Mouse include in his gross income?vFor each of the following independent situations, determine the amount, if any, that the taxpayer must recognize in $2024.$

a$.$ Goofy is a patient in a nursing home for $60$ days in $2024.$ While in the nursing home, he incurs total costs of $$15,650.$ Medicare pays $$8,000$ of the costs. Goofy receives $$18,730$ from his long$-$term care insurance policy, which pays while he is in the facility. Assume that the Federal daily excludible amount for $2024$ is $$410.$ Of the $$18,730,$ what amount, if any, will Goofy include in his gross income?

b$.$ Olaf, a generous individual, made the following interest$-$free loans during the year. Assume that tax avoidance is not a principal purpose of any of the loans. Assume that the relevant Federal tax rate is $7\%$ and that the loans were outstanding for just the last six months of the year.

Borrower

Amount Borrower$$s Net

Investment Income

Purpose of Loan

Elsa $$45,000$ $$950$ Purchase stock

Anna $$103,825$ $$0$ Purchase a residence

Considering the effects of the imputed interest rules on these transactions, compute Olaf$$s gross income from each of these loans:

$$ Elsa

$$ Anna

c$.$ Pluto, a police officer, was injured in the line of duty. He received the following during $2024$:

Salary $ $48,750$

Unemployment compensation $3,200$

Compensatory damages for physical injury $19,500$

Punitive damages for physical injury $17,000$

Cash reward for preventing a home burglary $6,500$

Workers$$ compensation $5,000$

What is the amount, if any, that will be included in gross income in $2024?$

d$.$ Kristoff delivers pizzas for Disney Pizza Shop. On Sunday, December $31,2023,$ Kristoff made several deliveries and collected $$385$ from customers. However, Kristoff forgot to turn in the $$385$ of proceeds to his manager at Disney Pizza Shop until Tuesday, January $2,2024.$

$$ How much, if any, will Disney Pizza Shop include in its gross income in $2023?$

$$ How much, if any, will Disney Pizza Shop include in its gross income in $2024?$

e$.$ Mighty Mouse received a scholarship of $$26,500$ from Disney University to be used to pursue a bachelor$$s degree. He spends $$13,400$ for tuition, $$2,500$ on books and supplies, $$10,000$ for room and board, and $$600$ on personal expenses. How much, if any, will Mighty Mouse include in his gross income?

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