1 pts

Robert bought a U.S. Treasury Note on 1/1/2021 for $10,000. The interest rate is 1% per year. The U.S. Treasury Note pays semi-annual interest on 6/30/2021, and semi-annual on 12/31/2021. The U.S. Treasury Note will mature on 12/31/2030. 12/31/2030, Robert will receive the specified semi-annual interest payment due on 12/31/2030, as well as the return of his $10,000. How much interest revenue does Robert recognize in 2021, and includes in his taxable income in 2021?

Group of answer choices

$100

$50

$0

$1,000

89

Raymond purchase a U.S. Government Series EE bond in 2005. The bond will mature in 2035. Which of the following is true regarding the taxability of interest that Raymond earns on the bond for Federal Income Tax Purposes?

Group of answer choices

Every year from 2005 through 2035, Raymond must recognize the imputed interest that he earns annually on the bond, and report it on his Federal Income Tax Return.

Raymond has the option to defer reporting the interest that he earns from the bonds until the bonds mature or are redeemed.

Interest on US Government EE bonds are non-taxable. Raymond does not report any of the interest that he earns.

Interest on US Government EE bonds is non taxable on the Federal Income Tax Return, but is considered taxable income on his California State Income Tax Return, and must be recognized annually on his California State Income Tax Return.

88.

What is the purpose of the IRS Form 1099-INT?

Group of answer choices

For a borrowing entity to tell the IRS and the taxpayer how much it earned from the taxpayer in the tax year.

For a stock brokerage to notify the IRS and the taxpayer how much dividends were paid to the taxpayer

For a stock brokerage to notify the IRS and the taxpayer the proceeds of all the stock sales made by the taxpayer

For a borrowing entity to tell the IRS and the taxpayer how much interest was paid to the taxpayer.

91.

On 1/1/2021, Tamara lent Rachel $10,000. Tamara and Rachel are friends, and this was a personal loan. The stated interest rate is 2% annual interest. On 6/30/2021, Rachel paid back Tamara $10,000, and an additional $100 of interest.

How much taxable interest income does Tamara include on her 2021 Federal Income Tax Return?

Group of answer choices

$0, because interest on personal loans in considered non-taxable income

$100

$10,200

$200

92.

Emily, a U.S. Resident, has bank accounts in foreign countries. When must she file a Report of Foreign Bank and Financial Accounts (FBAR) with the U.S. Treasury Deposit?

Group of answer choices

When the taxable interest earned in any foreign bank account exceeds $10,000 in a year.

When the value in any of her foreign accounts total more than $10,000 at any time of the year.

When she has any bank accounts outside of the United States

When the value in all her foreign accounts combined total more than $10,000 at any time during the year.

93

What is the purpose of the IRS Form 1099-DIV?

Group of answer choices

For the taxpayer to report to the IRS how much dividends the taxpayer received in a tax year.

For the taxpayer to determine the amount of short term capital gain and long term capital in the sale of company's stock.

For the company issuing a notice to the IRS how much of a tax deduction the company will be entitled to take for paying out dividends to its shareholders.

For the company issuing the dividend to inform the IRS and the taxpayer how much dividends the company issued to the taxpayer.