Cole, a 48-year-old married individual, received the following in 2016: S corporation stock dividends...............................................................$5,000 Interest earned on

Question:

Cole, a 48-year-old married individual, received the following in 2016:
S stock dividends...............................................................$5,000
Interest earned on federal Treasury bills.....................................................1,000
Interest earned on municipal bonds..........................................................2,500
Interest earned on state income tax refund......................................................50
Interest earned on Series EE savings bonds, used to help pay for room and board for dependent in college.........................................................................................1,500
Common stock property (FMV) ..................................................3,000
In addition, Cole spent $500 on lottery scratch-off cards in 2016. All of the cards were losers except for one, from which Cole won $1,000.
Given these facts, what total amount from the above should be included in gross income on Cole's 2016 tax return?
a. $ 4,550
b. $ 6,550
c. $11,050
d. $11,550
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...