15. Which of the following types of income are not considered ordinary income?

A. Both net long-term capital gains (in excess of short-term capital losses) and qualified dividend income.

B. Qualified dividend income.

C. Both compensation income and qualified dividend income.

D. Compensation income.

E. Net long-term capital gains (in excess of short-term capital losses).

16. Rowanda could not settle her tax dispute with the IRS at the appeals conference. If she wants to litigate the issue but does not have sufficient funds to pay the proposed tax deficiency, Rowanda should litigate in the:

A. U.S. District Court.

B. U.S. Circuit Court of Appeals.

C. U.S. Court of Federal Claims.

D. Tax Court.

E. None of the choices are correct.

17.

Assume that Bill's marginal tax rate is 30%. If corporate bonds pay 8% interest, what interest rate would a municipal bond have to offer for Bill to be indifferent between the two bonds?

A. 30.00%.

B. 10.40%.

C. 8.00%.

D. 7.00%.

E. None of the choices are correct.