Question1. Jemma is employed by United Parcel Service. United Parcel Service reimburses adoption expenses incurred by their employees. In 2021, Jemmas Adjusted Gross Income is $100,000. In 2021, United Parcel Service reimbursed Jemma $15,000 for adoption expenses incurred by Jemma. How much of the $15,000 reimbursement is includable in Jemmas 2021 Federal taxable income?

a. $0

b. $560

c. $14,440

d. $15,550

Q2. Aliyah received $500 in interest from U.S. government bonds, and $1,000 of interest from State of California municipal bonds. Aliyah is a California resident. How much of the interest that she received is taxable income for Federal Income Tax and California Income Tax?

a. $500 taxable for Federal Income Tax, and $500 taxable for California Income Tax.

b. $1,500 taxable for Federal Income Tax, and $1,500 taxable for California Income Tax.

c. $500 taxable for Federal income Tax, and $0 taxable for California Income Tax.

d. $0 taxable for both Federal Income Tax, and $0 taxable for California Income Tax.

Q3. In 20X1, Yvonne received $5,000 in qualified transportation fringe benefits from her employer. How much of the $5,000 is included in her taxable income on her California Income Tax Return?

a. $0

b. $1,760

c. $3,240

d. $5,000