Each of the numbered items below is accorded only one of the following lettered treatments. Use the existing law as it applies to the current year, match the best answer to the statements below.
-Raymond dies on July 8^th of the current year. Out of love and respect for Raymond, his employer gives his widow $5,000.

Question

Quizplus · Accepted Answer

The $5,000 given to Raymond's widow by his employer is considered a gift from the employer and is fully included in gross income as it is not a gift for tax purposes but rather compensation.

Each of the Numbered Items Below Is Accorded Only One