Question 1. In 2021, Jayden was an employee of Gray Corporation. Jayden attended College when she wasn't working. In 2021, Jayden spent $15,500 toward qualified education expenses. In 2021, Gray Corporation paid $15,500 to Jayden to reimburse Jayden for her education expenses. In 2021, how much of the $15,500 does Jayden include in her taxable income?

a. $0

b. $5,250

c. $10,250

d. $15,500

Question 2: In 20X1, Lee was hurt in the course of his employment with Foster Farms. In 20X1, Lee was paid the following amounts from Foster Farms' worker's compensation insurance company: $30,000 for a physical injury suffered by Lee $50,000 for replacement wages when Lee was unable to work $70,000 for physical pain suffered by Lee How much of the above does Lee include in his taxable income for 20X1?

a.$0

b. $30,000

c. $50,000

d. $150,000

Question 3. Jill is in the 24% Federal Marginal Tax rate. In 20X1, Jill bought $10,000 in State of California Municipal bonds, and earned $250 in interest from those Municipal bonds. How much money does Jill earn from the $250 in interest from the Municipal bonds after she pays Federal Income Tax on the $250 in interest?

a. $190

b. $0

c. $250

d. $10,000