1) Dwight (age 16) is claimed as a dependent by his parents. In 2021, Dwight received $3,000 of qualified dividends and he received $1,800 from a part-time job. What is his taxable income for 2021? Hint: You will need to determine Dwight's standard deduction in order to calculate his taxable income.

A. $4,800

B. $3,700

C. $2,650

D. $0

2) During 2021, Montoya (age 15) received $6,000 from a corporate bond. He also received $300 from a savings account established for him by his parents. Montoya lives with his parents and he is their dependent. His parents' ordinary tax rate is 24%. What is Montoya's tax liability?

A. $0

B. $520

C. $1,094

D. $1,248

E. None of the above

3) On January 1, 2021, Matthew purchased a zero-coupon bond for $20,000. The bond matures in 5 years and yields 9% annual interest semi-annually. He received a Form 1099-OID, and he was required to report $1,841 of gross income in 2021. Which of the following is correct?

A. This is a Series I Savings bond

B. This is an original issuance corporate bond

C. This is a corporate bond purchased on the secondary market

D. This is a municipal bond

4) On January 1, 2021, Bailey purchased a corporate bond with a maturity value of $50,000 on the secondary market for $54,055. The bond has a coupon rate of 10% and matures in five years. The bond yields 8% annual before-tax returns, compounded semi-annually. What is the minimum amount of interest income that Bailey can report on her 2021 tax return?

A. $0

B. $689

C. $4,000

D. $4,311

E. $5,000