Question

21.	Taxable interest received by the taxpayer is reported on which of the following forms?

A. Form 1040 (second page) and Schedule A.
B. Form 1040 (second page) and Schedule B.
C. Form 1040 (second page) and Schedule D.

22.	Which one of the following statements describes dividends?

A. Dividends on insurance policies are generally taxable.
B. Exempt-interest dividends received from a mutual fund are included in gross income, but at a favorable tax rate.
C. Nontaxable dividends reduce the basis in the insurance contract, stock, or mutual fund.

23.	In 2018, Ben Lane and his wife, Ann, received dividends of $500 and $25, respectively, from taxable domestic corporations. What amount of these dividends could be excluded from the Lanes’ taxable income on their 2018 joint return?

A. $0.
B. $275.
C. $525.

24.	Which one of the following statements describes dividend reporting?

A. Dividends are generally reported to the taxpayer on Form 1099-DIV.
B. All dividends are reported on Line 3b of Form 1040.
C. Capital gains cannot be reported on Form 1099-DIV.

25.	Excluding net investment income tax, qualified dividend income received by a taxpayer in the highest tax bracket on March 31, 2018, is taxed at a maximum tax rate of:

A. 15 percent.
B. 20 percent.
C. 39.6 percent.

Answer 1

Hi

As per policy we will solve only first question here.

21)

Schedule A of form 1040 itemized allowable deductions.

Schedule B of 1040 shows interest and dividend income.

Schedule C shows income related to self employment.

Schedule is used to show capital gain and loss.

Hence option B is correct answer here (form 1040 and schedule B)

Thanks