During 2018, Sandeep had the following transactions: $\begin{array}{ll}
\text { Salary } &\$ 80,000 \
\text {Interest income on City of Baltimore bonds } &1,000 \
\text { Damages for personal injury (car accident) } & 100,000 \
\text { Punitive damages (same car accident) } & 200,000\
\text { Cash diridends from Cheurnn Cornoration stock } &7,000\
\end{array}$
Sandeep's AC
A) $ \$ 185,000 $
B) 8187,000
C) 1885,000
D) 8287,000
E) $ \$ 387,000 . $

Question

During 2018, Sandeep had the following transactions: $\begin{array}{ll}
\text {  Salary } &\$ 80,000 \
\text {Interest income on City of Baltimore bonds  } &1,000 \
\text { Damages for personal injury (car accident) } & 100,000 \
\text { Punitive damages (same car accident) } & 200,000\
\text { Cash diridends from Cheurnn Cornoration stock  } &7,000\
\end{array}$
Sandeep's AC 
A) $ \$ 185,000 $ 
B) 8187,000 
C) 1885,000 
D) 8287,000 
E) $ \$ 387,000 . $

Quizplus · Accepted Answer

Sandeep's AGI includes salary, punitive damages, and cash dividends. Interest on municipal bonds and damages for personal injury are not taxable. Thus, AGI = $80,000 + $200,000 + $7,000 = $287,000.

During 2018, Sandeep Had the Following Transactions Sandeep's AC A)

During 2018, Sandeep Had the Following Transactions Sandeep's AC
A)