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Sandy Smith files a return as a head of household. Items of income received by sandy in 2011 were as follows. Interest on saving account with wells fargo: $500 interest on state income tax refund: $50 gambling winning: $1000 dividend from mutual life insurance company on life insurance policy: $1,000 dividends from better auto co. received on January 2, 2011: $875 the total dividends received on the life insurance policy do not exceed the aggregate of the premiums paid to the company. (a) How much should sandy include in her 2011 taxable income as interest?(b) How much should sandy report as dividend income from 2011?(c) How much should sandy include in taxable “other Income” for her state lottery winnings?
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