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Determine the gross income of the beneficiaries in the following cases:a.Justin’s employer was downsizing and offered employees an amount equal to one year’s salary if the employee would voluntarily retire.

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jepessoa

Answer:

Justin's salary is not given here, but it doesn't matter. Any payments that Justin will receive as part of the compensation for voluntarily retiring will be included in his AGI. It doesn't matter if Justin is being paid for not working, he is still being paid by someone else and that counts as ordinary income.

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