Income to U.S. taxpayers is taxed in the year it is derived in which of the following situations?

• Interest earned but reinvested in a savings account in an FDIC savings bank.

• Unrealized long-term capital gains on stocks.

• Income directly earned on most municipal bonds.

• Short-term gains realized within a qualified plan.

• Increased value of personal residence.

a. 1 only.

b. 1 and 3.

c. 2, 3, and 4.

d. 2, 3, 4 and 5.