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Determine the taxpayer's gross income for tax purposed in each of the following situations:
a. Olga, a cash basis taxpayer, sold a corporate bondwith accrued interest of $300 for $10,800. Olga's cost of thebond was $10,000.
b. Olga needed $10,000 to make a down payment on herhouse. She instructed her broker to sell some stock to raise the$10,000. Olga's cost of the stock was $3,000 . Based on herbroker's advice, instead of selling the stock, she borrowedthe $10,000 using the stock as collateral for thedebt.
c. Olga owned a vacant lot that was zoned forresidential housing. She spent $900 in attorney fees to get theproperty rezoned as commercial. The property's valueincreased by $10,000 as a result of the rezoning.
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