[9] Henry Adams, an unmarried taxpayer, received the following amounts during the current year: $1,000 500 750 200 Interest on savings accounts Interest on municipal bonds used for road construction Dividends on General Steel common stock Dividends on life insurance policies Adams should report taxable income after exclusions, if any, from dividends and interest for the current year in the amount of A. $1,500 B. $1,750 C. $1,950 D. $2,450 [10] With regard to the inclusion of Social Security benefits in gross income, which of the following statements is true? A. The Social Security benefits in excess of modified adjusted gross income are included in gross income B. The Social Security benefits in excess of one-half the modified adjusted gross income are included in gross income C. 85% of the Social Security benefits is the maximum amount of benefits to be included in gross income D. The Social Security benefits in excess of the modified adjusted gross income over $32,000 are included in gross income [11] Mr. and Mrs. Carter are both over 65 years of age and collected $6,000 of Social Security benefits in the current year. They also received $35,000 in fully taxable pension payments and $1,400 of tax-exempt interest. They had no deductions for adjusted gross income, and they filed a joint return. What amount of their Social Security benefits is included in their current-year gross income? A. $6,000 B. $3,700 C. $3,000 D. $2,300 [12] Mrs. Dee's husband died in the current year. She chose to receive the proceeds of her husband's $100,000 life insurance policy over a 10-year period. The monthly installments are $1,200 each. What is the amount of the annual payments that represents gross income to Mrs. Dee? A. $0 B. $2,000 C. $4,400 D. $14,400 [13] Scholarships and fellowships awarded to degree candidates are not taxable unless they are used for A. Tuition