Ask Question
8 August, 14:50

Heather's interest and gains on investments for the current year are as follows: Interest on Madison County school bonds $600 Interest on U. S. government bonds 700 Interest on a Federal income tax refund 200 Gain on the sale of Madison County school bonds 500 Heather must report gross income in the amount of: a.$2,000. b.$1,400. c.$1,300. d.$1,800. e. None of these choices are correct.

+1
Answers (1)
  1. 8 August, 18:06
    0
    Option (b) is correct.

    Explanation:

    Given that,

    Interest on Madison County school bonds = $600

    Interest on U. S. government bonds = $700

    Interest on a Federal income tax refund = $200

    Gain on the sale of Madison County school bonds = $500

    Gross income:

    = Interest on U. S. government bonds + Interest on a Federal income tax refund + Gain on the sale of Madison County school bonds

    = $700 + $200 + $500

    = $1,400

    Note: Interest on Madison County school bonds is exempt from the calculations of gross income.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Heather's interest and gains on investments for the current year are as follows: Interest on Madison County school bonds $600 Interest on ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers