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Edgar Had the Following Transactions for 2016

Question 104

Essay

Edgar had the following transactions for 2016:
Salary
$ 80,000
Alimony paid
(4,000)
Recovery from car accident-
Personal injury damages
$40,000
Punitive damages
70,000
110,000
Gift from parents
20,000
Property sales-
Loss on sale of boat (used for pleasure and owned 4 years)
($4,000)
Gain on sale of ADM stock (held for 10 months as an investment)
4,000
(-0-)
What is Edgar's AGI for 2016?

Correct Answer:

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$150,000.$80,000 (salary)- $4,000 (alimo...

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