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, and match the best answer to the statements below.

Question

A. Laura's employer pays the first $5,000 in childcare benefits under their childcare assistance plan.
B. Frank receives $1,000 interest income from city of St Louis bonds.
C. Tina receives 100 shares of Welby stock as a result of a 2 for 1 stock split. The shares have a value of $7,000 on the day of the split.
D. Julian's tenant improves her side of the duplex by making improvements to the bathroom and kitchen that are worth $750. Julian does not adjust her rent for the $750 improvements.
E. Jeane's employer pays his medical premiums each month ($130/month).
F. Jeane's medical insurance carrier reimburses him 80% of his qualified medical expenses. During the current year, Jeane receives $3,682 in payments.
G. Julia receives $6.3 million in compensatory damages for a personal physical injury.
H. Kenneth receives a new Ford Explorer worth $28,900 that his parents bought him for his 24th birthday.
I. Dick lives rent-free in an apartment (value $675/month) in a complex where he is the apartment manager and must be on the premises to handle problems.
J. Michelle's employer pays for her graduate school classes. Tuition during the year totals $2,500 (her employer does not have a qualified plan).
K. Katrina receives $1,000 interest income from U.S. Treasury bonds that her uncle had given to her.
L. Raymond dies on July 8th of the current year. Out of love and respect for Raymond, his employer gives his widow $5,000.
M. Marline receives $14 million in punitive damages for a personal physical injury.
N. David's employer laid him off for three months during the slow winter season. He collects $4,375 in unemployment compensation.
O. Hank's employer gives him fishing gear that is worth $1,250 at his retirement party as a compensation for past services. 
P. Sarah, the managing partner in an accounting firm, has her downtown parking space ($325/per month) paid by the firm. None of the accounting staff receive parking privileges.

Answer 1

A. Fully excluded from gross income
B. Fully excluded from gross income
C. Fully excluded from gross income
D. Fully excluded from gross income
E. Fully excluded from gross income
F. Fully excluded from gross income
G. Fully excluded from gross income
H. Fully excluded from gross income
I. Fully excluded from gross income
J. Fully included in gross income
K. Fully included in gross income
L. Fully included in gross income
M. Fully included in gross income
N. Fully included in gross income
O. Fully included in gross income
P. Partially excluded from gross income