George, an unmarried cash basis taxpayer, received the following amounts during 2014:
Interest on savings accounts $2,000
Interest on a State tax refund 600
Interest on City of Salem school bonds 350
Interest portion of proceeds of a 5% bank certificate of deposit purchased on July 1, 2013, and matured on June 30, 2014 250
Dividends on USG common stock 300
a. $2,300.
b. $2,550.
c. $3,150.
d. $3,500.
e. None of these.
Answer: c
Interest on savings accounts $2,000
Interest on a State tax refund 600
Interest on City of Salem school bonds 350
Interest portion of proceeds of a 5% bank certificate of deposit purchased on July 1, 2013, and matured on June 30, 2014 250
Dividends on USG common stock 300
What amount should George report as gross income from dividends and interest for 2014?
a. $2,300.
b. $2,550.
c. $3,150.
d. $3,500.
e. None of these.
Answer: c