Charlie was hired by Ajax this year as a corporate executive anda member of the board of directors. During the current year,Charlie received the following payments or benefits paid on hisbehalf.

Salary payments $ 123,500
Contributions to qualified pension plan 10,600
Qualified health insurance premiums 10,850
Year-end bonus 21,500
Annual directorâs fee 15,700
Group-term life insurance premiums (face =$40,000) 1,195
Whole life insurance premiums (face = $100,000) 2,130
Disability insurance premiums (no special elections) 5230

1) Charlie uses the cash method and calendar year for taxpurposes. Calculate Charlieâs gross income for the currentyear.

2) Assume that in lieu of a year-end bonus Ajax transferred1,380 shares of Bell stock to Charlie as compensation. Furtherassume that the stock was listed at $29 per share and Charlie wouldsell the shares by year-end, at which time he expected the price tobe $32 per share. Calculate the value of compensation Charlie wouldreport and gain on the sale that would be included in Charlie'sgross income.

a) value of compensation?___

b) Gain on sale?___

3) Suppose that in lieu of a year-end bonus Ajax made Charlieâshouse payments (a total of $27,500). Calculate the value of thehouse payments Charlie would report as income?______