James, a cash basi, s taxpayer, received the following compensation and fringe benefits in the current year: salary $66,000 disability income protection premiums 3,000, long-term care insurance premiums 4,000. his actual salary was $72,000. he received only $66,000 because his salary was garnished and the employer paid $6,000 on james's credit card debt he owed. the wage continuation insurance is available to all employees and pays the employee three-fourths of the regular salary if the employee is sick or disabled. the long-term care insurance is available to all employees and pays $150 per day towards a nursing home or similar facility. what is james's gross income from the above? a. $74,000.b. $72,000.c. $66,000.d. $73,000.e. none of the choices are correct.

James albemarle created a trust fund at the beginning of 2016. the income from this fund will go to his son edward. when edward reaches the age of 25, the principal of the fund will be conveyed to united charities of cleveland. mr. albemarle specified that 75 percent of trustee fees are to be paid from principal. terry jones, cpa, is the trustee. james albemarle transferred cash of $500,000, stocks worth $400,000, and rental property valued at $250,000 to the trustee of this fund. immediately invested cash of $360,000 in bonds issued by the u.s. government. commissions of $7,900 are paid on this transaction. incurred permanent repairs of $9,000 so that the property can be rented. payment is made immediately. received dividends of $8,000. of this amount, $3,000 had been declared prior to the creation of the trust fund. paid insurance expense of $4,000 on the rental property. received rental income of $10,000. paid $8,000 from the trust for trustee services rendered. conveyed cash of $7,000 to edward albemarle.