1. Father made an interest-free gift loan (meaning father did not charge interest) of $150.000 to son in 2023 with an undetermined time frame for repayment. Neither father nor son will recognize any gross income in 2023 because gifts are excluded from gross income.

1. True
2. False

2. Which of the following is a deduction from AGI?

1. Contributions to a traditional Individual Retirement Account.
2. Interest on mortgage property classified as fully rental property.
3. Loss on the sale of a personal residence.
4. Medical expenses.
5. None of a-d is a deduction for AGI

3. Ayla, age 17, is claimed by her parents as a dependent. During 2023, she had interest income from a bank savings account of $2,000 and income from a part-time job of $4,200. Ayla's taxable income is:

a. $4,200 - $4,600 = SO.

b. $6,200 -$4,600= $1,600.

c. $6,200 -$13,580 = SO.

d. $6,200 - $4,200 = $2,000.

please answer all