George, an Unmarried Cash Basis Taxpayer, Received the Following Amounts

question 78

Multiple Choice

George, an unmarried cash basis taxpayer, received the following amounts during 2017: $$\begin{array} { l r } \text { Interest on savings accounts } & \$ 2,000 \\\text { Interest on a State tax refund } & 600 \\\text { Interest on City of Salem school bonds } & 350 \\\text { Interest portion of proceeds of a 5\% bank certificate of deposit } & \\\text { purchased on July 1, 2016, and matured on June 30, 2017 } & 250 \\\text { Dividends on USG common stock } & 300\end{array}$$ ? What amount should George report as gross income from dividends and interest for 2017?

• A)$2,300.
• B)$2,550.
• C)$3,150.
• D)$3,500.
• E)None of these.

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Definitions:

Systematic Desensitization

A behavioral therapy technique used to reduce phobic reactions through gradual exposure to the feared object or situation.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of time without exposure to the conditioned stimulus.

Mental Representation

An internal image or concept of an external reality or abstract idea.

Extinct Conditioned Responses

The process by which a conditioned response becomes weaker or disappears after the conditioned stimulus is repeatedly presented without the unconditioned stimulus.