Please refer to the second MC set, question 1 copied below. To complete this assignment you will need to download Form 1040, Schedule B and instructions to both. Part of the learning experience is finding the required forms and instructions on your own.

Required (points):

(0.5) Please prepare Form 1040, page 1, lines 2a and 2b and attach.

(1) Regardless of whether it is required, please prepare Schedule B, Part I and attach.

(0.5) Were the taxpayers required to complete Schedule B?

2(1) Support your answer to the previous question by quoting from the instructions to 1040 or to schedule B.

3-Preparing Schedule B seems to be a small investment of time and effort and not really that costly in time and effort. It certainly has no effect on taxable income (whether or not interest is reported on Form 1040 with or without a schedule B to support it). Why would a taxpayer wish to avoid having to prepare a Schedule B?