Question

Herbert was employed for the first six months of 2019 and earned $90,000 in salary. During the next six months, he collected $8,800 of unemployment compensation, borrowed $12,000 (using his personal residence as collateral), and withdrew $2,000 from his savings account (including $60 of interest). He received dividends of $550. His luck was not all bad; in December, he won $1,500 in the lottery on a $5 ticket. Indicate how much (if any) of each item is included in Herbert's gross income.

Answer 1

Gross income: 100910

Step-by-step explanation:

Salary: 90,000

Unemployment compensation: 8,800

Loan proceeds: 0

Savings account withdrawal (including interest): 60

Dividend income: 550

Lottery winnings: 1,500

Gross income: 100910