9. During 2022, Fran Farley, age 26 and single, redeems several Series EE U.S. savings bonds. The bonds had been purchased several years ago by Fran's father, who gifted them to her four years ago. Assume that Fran receives $20,000 principal and $2,000 of interest income. Fran also has $1,000 of higher education expense in 2022 and her adjusted gross income is $70,000, How much of the $2,000 of interest income may Fran exclude on her 2022 federal Income tax return?

A $2,000

B 1,000

C 0

D 500

E None of the above

10. Taxpayer is a full time student attending VCU. During the year, Taxpayer received amounts as set out below. $5,000 scholarship provided by VCU - $3,000 designated for tuition and $2,000 designated for room and board. $4,500 payment from VCU for part-time clerical work in an academic office $6,000 aid from his parents $5,000 from two off-campus part time jobs What is the amount of Taxpayer's gross income for the year?

A $14,500

B 7,500

C 5,000

D 11,500

E None of the above

11. Taxpayer, age 61, is employed by the Ajax Company. The Ajax Company offers group term life insurance for all full-time employees. Taxpayer is covered under a policy providing a $90,000 death benefit. The Ajax Company made premium payments of $540 for Taxpayer's coverage during the year. How much, if any, additional income will be reported on Taxpayer's W-2 for the year as a result of the life insurance coverage?

A $ 540

B 0

C. 320

D 270

E None of the above

12. Taxpayer, age 67 and single, received current year income as set out below Wages $ 12,000 3,000 Interest income 4,000 Tax-exempt interest income 20,000 Social Security benefits How much, If any, of Taxpayer's Social Security benefits will be taxable for the year?

A $ 10,000

B. 2,000

C 17,000

D.4,000

E. None of the above

13. Patrick Wilson purchases a joint and survivor life annuity during 2020. The annuity provided for payments of $300 per month to Patrick beginning immediately. The annuity also provides for payments of $300 per month to William's spouse, Katherine, upon Patrick's death if Katherine survives. Assume that Patrick and Katherine are both age 73 as of the annuity beginning date. Assume also that Patrick's cost for the annuity is $55,000. For year 2022, both Patrick and Katherine are living. How much gross income will Patrick and Katherine report on their2022 joint Form 1040? A $ 3,040

B. 3,600

C 560

D 0

E None of the above