3-42
Rental Income . Ed owns Oak Knoll Apartments . During the year , Fred , a tenant , moved to another state . Fred paid Ed $ 1,000 to cancel the two-year lease he had signed . Ed subsequently rented the unit to Wayne . Wayne paid the first and last months ’ rents of $ 800 each and a security deposit of $ 500 . Ed also owns a building that is used as a health club . The club has signed a fifteen-year lease at an annual rental of $ 17,000 . The owner of the club requested that Ed install a swimming pool on the property . Ed declined to do so . The owner of the club finally constructed the pool himself at a cost of $ 15,000 . What amount must Ed include in gross income ?
3-43
Gross Income . Susan ’ s salary is $ 44,000 and she received dividends of $ 600 . She received a statement from SJ partnership indicating that her share of the partnership ’ s income was $ 4,000 . The partnership distributed $ 1,000 to her during the year and $ 600 after yearend . She won $ 2,000 in the state lottery and spent $ 50 on lottery tickets . Which amounts are taxable ?
3-44
Interest Income . Holly inherited $ 10,000 of City of Atlanta bonds in February . In March , she received interest of $ 500 , and in April she sold the bonds at a $ 200 gain . Holly redeemed Series EE U . S . savings bonds that she had purchased several years ago . The accumulated interest totaled $ 800 . Holly received $ 300 of interest on bonds issued by the City of Quebec , Canada . What amount , if any , of gross income must Holly report ?
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