Question

This year Ed celebrated his 25th year as an employee of Designer Jeans Company. In recognition of his long and loyal service, the company awarded Ed a gold watch worth $105 and a $2,490 cash bonus. What amount must Ed include in his gross income?

Answer 1

Answer:

$2,490

Explanation:

Based on the information given we were told that in order for the company to recognize his long as well as loyal service they awarded Ed a gold watch worth the amount of $105 which as well include the amount of $2,490 as cash bonus which means that the amount that Ed must include in his gross income will be the cash bonus amount of $2,490.

Therefore the amount that Ed must include in his gross income is $2,490