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-Sneha, age 11, is a dependent of his parents. Her only source of income in 2018 is $7,500 of interest income on bonds given her

-Sneha, age 11, is a dependent of his parents. Her only source of income in 2018 is $7,500 of interest income on bonds given her by her grandparents, resulting in taxable income of $6,450. Under kiddie tax rules, calculation of tax requires dividing taxable income between net unearned income and earned taxable income (ETI). Sneha's taxable income will be divided as follows:

A) net unearned income -$5,450 and earned taxable income -$1,050..

B) net unearned income -$5,450 and earned taxable income -$0.

C) net unearned income -$0 and earned taxable income -$5,950.

D) net unearned income -$5,950 and earned taxable income -$1,050.

-Jamal owns 1,500 shares of Green Corporation. This year, Green declared a 5% stock dividend. There was no option for shareholders to receive cash. When Jamal received 75 shares of Green stock, it had a fair market value of $60 a share. How much income does Jamal have from the dividend?

A) $0

B) $50

C) $5,000

D) $50,000

-Francisco purchased an annuity for $60,000 that will pay him $1,000 per month for ten years. What amount should Francisco include in his income each year?

A) $0

B) $6,000

C) $10,000

D) $12,000

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