21. Which of the following bonds can be a tax-exempt bond if issued in the current year so that the interest may be excluded from gross income? $1 million of bonds issued by a city with 50% of the proceeds to be used by a private developer to create an industrial neighborhood of offices and warehouses The developer will use the sales and rents to repay 50% of the bond issue. a. b. $1 million of bonds issued by a city with 50% of the proceeds to be invested in c. $1 million of bonds issued by a state with all the proceeds to be used to finance d. $1 million of bonds issued by a city with all of the proceeds to be used to help higher-yielding corporate bonds. student loans. finance a sports stadium owned by a nongovernment company. 23. John is a cash-basis taxpayer. He received the following items of income in December 2018. The loan on his truck was forgiven because he performed accounting work for the dealer. He owed $2,000 at the time. He received a retainer of $500 from a new client to guarantee that his services would be available in February when the client would need help preparing financial statements. He finally received the $800 for work he completed in November of 2017. How much of this income must John include on his 2018 tax return? a. $500 b. $1,300 c. $2,500 d. $3,300 her seven grandchildren. What is the maximum amount Taylor can give for calendar year 2018 without using her unified transfer credit? 6. Taylor, a widower, makes cash gifts to her five married children and their spouses and a. $120,000 b. $195,000 c. $225,000 d. $255,000