Joanna received $60,000 compensation from her employer, the value of her stock in ABC company appreciated by $5,000 during the year (but she did not sell any of the stock), she received $30,000 of life insurance proceeds from the death of her husband. What is the amount of Joanna's gross income from these items?

Question

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Joanna's gross income includes the $60,000 compensation from her employer. The $5,000 appreciation in stock value is not included as income because it is unrealized gain (she did not sell the stock). The $30,000 life insurance proceeds are not included in gross income as they are typically tax-exempt.

Joanna Received $60,000 Compensation from Her Employer, the Value of Her