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answers are supose to be 1b and 2a, but I am not getting those answers. 1. Multiple Choice: Barbara reports gross income of $100,000 on

answers are supose to be 1b and 2a, but I am not getting those answers. image text in transcribed
1. Multiple Choice: Barbara reports gross income of $100,000 on her 2020 tax return. In addition, she earns $21,000 for babysitting five evenings a week for a neighbor. She does not report the babysitting income on her tax return, since the amount is not reported to the IRS by her neighbor. Thus, she realistically believes that the IRS will never know about it. What is the statute of limitations for the IRS to audit Barbara's return? a. 3 years b. 6 years c. No limitation on the time the IRS has to audit. d. Babysitting income is not taxable. e. None of the above 2. Multiple Choice: John, age 3, has 4,200 of dividend income from stock gifted to him by his grandparents who have a marginal tax rate of 25%. John has no other income, and his parents have income of over $3 million. What is John's income tax liability for the year? a. $870 b. $420 c. $630 d. $793 e. None of the above

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