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John (45) and Cynthia (46) are married, and they will file a joint return. During the year, they earned investment income consisting of: $200 interest
John (45) and Cynthia (46) are married, and they will file a joint return. During the year, they earned investment income consisting of:
- $200 interest income from a savings account with their local bank, reported on Form 1099-INT.
- $350 interest income from a certificate of deposit held with another local bank, reported on Form 1099-INT.
- $100 in dividends from a savings account with a local credit union, reported on Form 1099-INT.
- $250 interest income from a U.S. Treasury note, reported on Form 1099-INT.
- $500 tax-exempt interest income from a municipal bond investment, reported on Form 1099-INT.
- $1,700 in ordinary dividends from a mutual fund investment, reported on Form 1099-DIV.
Complete John and Cynthia's Schedule B (Form 1040), Interest and Ordinary Dividends. You will need to refer to the completed Schedule B to answer questions about this scenario in Part I of the Final Test.
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