Taxable Income Practice Test

Parker was employed for part of the year. Parker received $35,000 of wages, $6,400 from a state unemployment compensation plan, and $2,000 from her former employer’s company paid supplemental unemployment benefit plan. What is the amount of Parker’s gross income?

The following year-1 annual report was received by Clark from the qualified defined contribution plan provided by Clark's employer:

• Beginning balance: $12,700
• Employer contribution: 600
• Plan earnings: 250
• Ending balance: $13,550

What income must be included in Clark's gross income for year 1?