22.Interest is not imputed on a gift loan between two individuals totaling $15,000 except when the borrowed funds are used to purchase income-producing property.

True

False

24.Leslie, who is single, finished graduate school this year and began repaying her student loan. The proceeds of the loan were used to pay her qualified higher education expenses. She has not received any type of educational assistance or scholarships. The amount of interest paid during the year amounted to $3,800. What is the amount and classification of her student loan interest education deduction if her modified AGI is $40,000?

		$2,500 from AGI
		$3,800 for AGI
		$3,800 from AGI
		$2,500 for AGI

25.Mae Li is beneficiary of a $70,000 insurance policy on her father's life. Upon his death, she elects to receive the proceeds in installments from the insurance company that carries the policy. She will receive $16,000 per year for five years. What are the tax consequences each year?

		All $16,000 each year is taxable.
		There is no taxable income.
		$10,000 interest is taxable in the first year.
		$2,000 of the $16,000 payment is taxable each year.