1. Brandy graduated from Vanderbilt with her bachelor’s

1. Brandy graduated from Vanderbilt with her bachelor’s degree recently. She works for Walton & Company CPAs. The firm pays her tuition ($7,500 per year) for her so that she can receive her MBA. How much of the $7,500 tuition benefit does Brandy need to include in her income?

2. Redoubt LLC traded machinery used in its business to a machinery dealer for some new machinery. Redoubt originally purchased the machinery for $80,180 and it had an adjusted basis of $52,820 at the time of the exchange. The new machinery had a fair market value of $62,180. Redoubt also received $7,090 of computer equipment in the transaction. What is Redoubt’s gain or loss recognized on the exchange?

3. Lina, a single taxpayer with a 35 percent marginal tax rate, desires health insurance. The health insurance would cost Lina $8,500 to purchase if she pays for it herself (Lina’s AGI is too high to receive any tax deduction for the insurance as a medical expense). Lina’s employer has a 30 percent marginal tax rate. What is the maximum amount of before-tax salary Lina would give up to receive health insurance?