1. How do business losses from sole proprietorships and/or partnerships impact ordinary income?

   		A. Reduces ordinary income by the entire amount, no limit.
   		B. Reduces ordinary income up to $250,000 per taxpayer.
   		C. No effect on ordinary income.
   		D. Reduces ordinary income up to the limit of $3,000 per year

2. Wilma has a $50,000 certificate of deposit (CD) at the local bank. The interest on this certificate, $3,500, was credited to her account this year and she withdrew it early. She was charged a $130 early withdraw fee. Which of the following is a true statement?

		A. Wilma must include the $3,500 of interest in her income this year only if the bank waives the early withdrawal penalty.
		B. Wilma must include the $3,500 of interest in her income this year, and the early withdraw penalty has no tax implications.
		C. Wilma must include the $3,500 of interest in her income, and take a FOR AGI adjustment of the $130 for the early withdrawal penalty.
		D. Wilma must include the $3,370 of interest in her income, and take a FROM AGI deduction for the $130 early withdraw penalty.