20. Amy, a California resident, received the following investment income in 2018. How should she report her interest income on Schedule CA (540) as an adjustment?

    Dividends from an HSA: $180 Interest from CA state municipal bonds: $520 Interest from Oregon state municipal bonds: $350

    a) Report $870 on line 2, column B as a subtraction; and report $180 on line 2, column C as an addition. b) Report $530 on line 2, column C as an addition. c) Report $1,050 on line 2, column C as an addition. d) Report $520 on line 2, column B as a subtraction; and report $530 on line 2, column C as an addition.
21. Natalie is a California resident. Last year, the company she works for was shut down for three months. During that time, Natalie visited her parents in Utah and took a temporary job while there. Because she was still a resident of California, she must report the income from the temporary job on her California state return and will have to pay taxes on it. Can Natalie use California Schedule S (540) to claim a credit for income tax paid to Utah, and why or why not? a) No; she must claim the credit on the Utah tax return because she earned the wages in that state. b) Yes; she may claim a credit for tax paid to Utah since Utah does not allow a credit for net income taxes paid to California. c) Yes; she may claim a portion of the credit on the California return, and a portion on the Utah tax return. d) No; she may only claim the credit on the Utah tax return because California doesnt allow the credit for income tax paid on wages earned in Utah.
22. Pete and Gladys are married but agreed to a 3-month trial separation on November 1st and plan to get back together at the end of the three months. Petes income is $24,000, and Gladys income is $36,000. There is no other income. If they decide to file their tax returns separately, how much income should each report on their return? a) Pete should report $24,000, and Gladys should report $36,000. b) Pete should report $30,000, and Gladys should report $30,000. c) Pete should report $28,500, and Gladys should report $31,500. d) They should each report $60,000, and the state will decide how it should be divided.