Arnold was employed during the first six months of the year and earned a $90,000 salary. During the next 6 months he collected $7,200 of unemployment compensation, borrowed $6,000 (using his personal residence as collateral), and withdrew $1,000 from his savings account (including $60 interest). When he left his former employer, he withdrew his retirement benefits (a qualified annuity) in a lump-sum of $50,000. He made no contributions to the plan. Arnold’s parents loaned him $10,000 (interest free) on July 1 of the current year, when the Federal rate was 3%. Arnold did not repay the loan during he year and used the money for living expenses. Calculate Arnold’s adjusted gross income for the year.

$147,260

Explanation:

Salary$ 90,000

Unemployment compensation $7,200

Interest income $60

Retirement benefit $50,000

Adjusted gross income $147,260

Therefore Arnold’s adjusted gross income for the year is $147,260 although the

interest-free loan does not result in gross income to Arnold due to the $10,000 exception.

2 years

Explanation:

Freight claim, sometimes referred to as shipping claim, is a term that describes a form of legal demand by a shipper or consignee to a carrier in respect to financial reimbursement for the loss or damage of a shipment.

According to the United States of America's Carriage of Goods by Sea Act (COGSA), which stated that, in a situation whereby the carrier has refused to pay a freight claim, then the claimant has 2 YEARS from the time the claim was disallowed to file for legal relief in the courts.

Hence, in this case, the correct answer is 2 Years.