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George, an Unmarried Cash Basis Taxpayer, Received the Following Amounts

Question 96

Multiple Choice

George, an unmarried cash basis taxpayer, received the following amounts during 2014:
Interest on savings accounts $2,000 Interest on a State tax refund600 Interest on City of Salem school bonds350 Interest portion of proceeds of a 5% bank certificate of deposit purchased on July 1, 2013, and matured on June 30, 2014 250 Diridende on ISCG common stock 300\begin{array}{llr} \text {Interest on savings accounts } &\$2,000\\ \text { Interest on a State tax refund} &600\\ \text { Interest on City of Salem school bonds} &350\\ \text { Interest portion of proceeds of a \( 5 \% \) bank certificate of deposit} &\\ \text { purchased on July 1, 2013, and matured on June 30, 2014 } &250\\ \text { Diridende on ISCG common stock } &300\\\end{array}

What amount should George report as gross income from dividends and interest for 2014?


A) $2,300.
B) $2,550.
C) $3,150.
D) $3,500.
E) None of the above.

Correct Answer:

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