1. Allison opens a savings account at her local bank and deposits $800. The account earns $20 interest. She also receives a $15 calculator. No other interest is credited to her account during the year and the Form 1099-INT she receives shows $35 interest for the year. What amount of interest income must Allison report on her tax return?

A. $0 B. $15 C. $20 D. $35

2. The interest on which of the following dividends is generally not taxable?

A. Exempt-interest dividends from a mutual fund

B. Cooperative banks dividends

C. Credit unions dividends

D. Federal savings and loan associations dividends

3. The individual taxpayer uses Schedule D for all of the following except:

A. To report nonbusiness bad debts

B. To figure the overall gain or loss from transactions reported on Form 8949

C. To report a gain from Form 2439

D. To report a gain or loss from Form 4684

4. The taxpayer should keep accurate records that show the basis of a property and, if applicable, the adjusted basis of the property should show which of the following?

A. The purchase price

B. The cost of improvements

C. Depreciation

D. All of the above