Chapter 5

Question 1

Your home’s value has appreciated by $50,000 this year and you did not sell your home. This $50,000 in appreciation is realized income.

True

False

Answer 1

False

Question 2

Which of the following forms of economic benefit are considered income?

Check

Services

Property

Goods

All of the above

Answer 2

All of the above

Question 3

Which of the following is NOT an example of a qualified (i.e., excluded) fringe benefit?

Health insurance coverage

Award for good performance

Value of air conditioning

Employer-provided meals

Answer 3

Award for good performance

Question 4

If my divorce agreement was signed on December 30, 2018, alimony is not taxable when received.

True

False

Answer 4

False

Question 5

What type of annuities will we focus on in this class?

Fixed term

Life term

Answer 5

Fixed

Question 6

When a taxpayer sells property, they need to include the cost they paid for the property.

True

False

Answer 6

False