15) George and Elaine are married. Tom, who is their 26-year old son, is a full-time medical student. He is working towards a degree. Tom earned a $50,000 scholarship. Tuition is $65,000. George and Elaine pay for the balance of Tom's school costs. In addition, Tom's parents contributed $14,000 caring for Tom. Tom earned $6,500 from a part-time. True/False - George and Elaine cannot claim Tom as a dependent.

True

False

16) John, who is a cash basis taxpayer, receives January's 2020 rent payment from his tenant on Dec. 27, 2019. The tenant informs John that there are not sufficient funds in the account. He asks John not deposit the check until January 5. John includes the January rent in gross income in 2019. True/False John was correct to include the January's rent in his 2019 tax return?

True

False

17) In May 2018, Jamie invoiced one of her clients $10,000. She instructs her client to make the payment directly to Jamie's mother, Sara. When Sara files her tax return she includes the $10,000 payment from Jamie's client as part of her taxable income. True/False - Sara was correct in including the $10,000 payment in her income?

True

False

18) Frank is an avid investor. He borrows money to make investments during the year, he incurred $3,500 of interest expense. During the year, he had the following income items $1,000 of qualified dividends, $500 of interest income from a corporate bond, $200 from a municipal bond and $6,000 of net L/T capital gains. How much of investment interest expense can Frank claim on his return?

	A.	$3,500
	B.	$2,000
	C.	$3,300
	D.	$1,500
	E.	$500