Question

Noor Patel has had a busy year! She decided to take a cross-country adventure. Along the way, she won a new car on the "Price Is Right" (valued at $15,500) and won $500 on a scratch-off lottery ticket (the first time she ever played). She also signed up for a credit card to start the trip and was given a sign-up bonus of $100. How much will she have to include in her federal taxable income?

Answer 1

$16,100

Step-by-step explanation:

The computation of the amount included in the federal taxable income is shown below:

= Winning of car price + winning amount + credit and sign up bonus

= $15,500 + $500 + $100

= $16,100

hence, the amount involved in the federal taxable income is $16,100

We simply applied the above formula so that the correct value could come