____ 28. Jack’s interest and gains on investments for 2016 were as follows: Inte
ID: 2587796 • Letter: #
Question
____ 28. Jack’s interest and gains on investments for 2016 were as follows:
Interest on Band County bonds
$900
Interest on U.S. government bonds
700
Interest on Apple Corp bonds
400
Interest on a Federal income tax refund
300
Gain on the sale of Band County bonds
600
Jack’s gross income from the above is: Please select the correct answer and why (include a brief description).
a.
$2,000.
b.
$1,800.
c.
$1,400.
d.
$1,300.
e.
None of the above.
Interest on Band County bonds
$900
Interest on U.S. government bonds
700
Interest on Apple Corp bonds
400
Interest on a Federal income tax refund
300
Gain on the sale of Band County bonds
600
Explanation / Answer
a. $2000
Answer:- $900 + $700 $400 = $2000.
Interst on federal income tax refund of $300 and gain on sale of band county bonds of $600 does not form part of gross income.
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