Answer:
$300
Explanation:
Given that :
Jay received the following fair market value amounts during the current year:
Interest on Montgomery County bonds
(used to build a bridge)                                                $100
Interest on U.S. Treasury notes                                   $200
Gain on sale of Montgomery County bonds               $300
Common stock dividend in IBM Corporation
- common stock (no cash option)                                   $400
From the above amounts that Jay received during the current year;
The following are free from an obligation and liability imposed as a result of tax.
1. Interest on Montgomery County bonds (used to build a bridge) 
2. Interest on U.S. Treasury notes
3. Common stock dividend in IBM Corporation  common stock (no cash option) 
So; we can say they are not taxable 
BUT only Gain on sale of Montgomery County bonds which is  $300 only taxable 
Thus, The amount of taxable income  Jay should  report from the above  amounts is $300