George,an unmarried cash basis taxpayer,received the following amounts during 2013: What amount should George report as gross income from dividends and interest for 2013?

Question

George,an unmarried cash basis taxpayer,received the following amounts during 2013:  What amount should George report as gross income from dividends and interest for 2013?

Quizplus · Accepted Answer

The amount of gross income from dividends and interest for George is calculated as follows:

Interest Income: $1,500 (from the savings account)

Dividend Income: $1,650 ($1,500 + $150)

Total Gross Income from dividends and interest: $1,500 + $1,650 = $3,150.

Therefore, the correct answer is (C) $3,150.

George,an Unmarried Cash Basis Taxpayer,received the Following Amounts During 2013