Question

Rhett made his annual gambling trip to Uwin Casino. On this trip Rhett won $250 at the slots and $1.200 at poker. Also this year, Rhett made several trips to the racetrack, but he lost $700 on his various wagers. What amount must Rhett include in his gross income? Multiple Choice
a. 08 Zero - gambling winnings are not included in gross income
b. $1,450
c. $250
d. $750
d. $1,200

Answer 1

Answer:

b. $1,450

Explanation:

Data provided as per the question

Winnings in slot = $250

Winnings in poker = $1,200

The computation of gross income is shown below:-

Total amount in Gross Income = Winnings in slot +  Winnings in poker

= $250 + $1,200

= $1,450

Therefore for computing the total amount in gross income we simply add winning in slot with winning in poker.