1) A single taxpayer provided the following information for 2018 ut est completes the statement or answer the question Salary Interest on local government bonds (qualifies as a tax exclusion) Allowable itemired deductions SHO,000 1600 13TORIO What is taxable income? A) $67,000 B) $68,000 C) 562,950 D) 570,000 2) Which of the following bonds do not generate tax exempt federal income? A) US Treasury bonds B) school district bonds bonds issued by cities D) bonds issued by fire districts 3) Joe Green, a police officer, was injured in the line of duty. He received the following during the year: $50,000 2,000 Salary Cash reward for preventing a break-in Compensatory damages for physical injury Punitive damages 14,000 What is the amount that is taxable? A) $84,000 B) $52,000 C) $70,000 D) $66,000 4) Michael is an employee of Stay Here Hotels, Inc. in Washington, DC. On his vacation, Michael travels to San Francisco and stays at a Stay Here Hotel for six nights free of charge. The regular rate for a hotel room at Stay Here in San Francisco is $200 a night. His ability to stay in the hotel without charge is based on the availability of empty rooms. How much income must Michael report due to the use of the San Francisco hotel room? A) $0 B) $200 C) $600 D) $1,200 5) 5) Lisa receives a $18,000 scholarship from City University. The university specifies that $10,000 is for tuition, books, supplies, and equipment for classes. The other $8,000 is for room and board. Lisa works ten hours per week as a grader, for which she is paid $8,300 for the year. Of the total amount received, Lisa must include the following amount in gross income A) $26,300 B) $8,300 C) $8,000. D) $16,300