1. In January, T redeemed Series EE savings bonds for a redemption value of $11,000 and an original cost of $9,600. T used $2,750 of the redemption proceeds to pay her dependent daughter's tuition at Rutgers University, where she is a full-time student. Assuming T's AGI is below the beginning of any phase-out range, determine the amount that T must include in gross income as a result of the redemption.

enter answer:

2. Unreimbursed employee business expenses are deductible For AGI.

True

False

3. Taxpayers T and S, a married couple filing jointly, report $95,000 in taxable income for the year. Determine the couple's tax liability assuming all income is ordinary income. Do not round.

ENTER ANSWER

4. In 2017, T purchased a parcel of real property for $350,000 using $25,000 in cash and $325,000 in funds borrowed from Bank. In 2019, the value of the property had declined to $250,000 and T still owed $325,000 to Bank. T has no other assets or liabilities. As a result of the decline in value of the property, Bank agreed to reduce the amount due on the loan to $295,000. Determine the amount T must include in gross income as a result of the debt forgiveness.

ENTER ANSWER