For Questions 18-20 Please base on the following Hal and Heidi Hofendorph are married and file a joint return. During 2017, they jointly received the following items: 100,000 3,000 2,000 3,000 500 Life insurance proceeds on the death of an unrelated friend Interest on life insurance policy's accumulated dividends..... Dividends on stock of a Swedish corporatio... Dividend on life insurance policy. 18. What is the total amount of interest income must Hal and Heidi INCLUDE in their 2017 Gross Income a. $0 b. $2,000 c. $3,000 d. $5,000 19. What is the total amount of dividend income must Hal and Heidi INCLUDE in their 2017 Gross Income: a. $0 b 500 c. $3,000 d. $3,500 20. May Hal and Heidi EXCLUDE the life insurance proceeds they receive due to the death of their friend? a. Yes b. No Part 3 Chapter 6 Deductions 21. What are the categories of Allowable Deductions? a. Trade or Business b. Non-Business -i.e. incurred in the production or collection of income c. Personal - Deductions for AGI and Deductions From AGI d. A and B e. A, B and C