Ask Question
16 March, 09:08

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

+2
Answers (1)
  1. 16 March, 09:58
    0
    c. $1,400

    Explanation:

    The computation of the amount which is reported in the gross income is shown below:

    = 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

    The Interest on Madison County school bonds $600 is exempt. So, it is not taxable and thus not included in the 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 $600Interest on U. ...” 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