Question

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.$1,800. b.$1,300. c.$2,000. d.$1,400.

Answer 1

Answer: $1400

Explanation:

The amount of gross income that Heather must report will be the addition of the interest on the US government bonds, the interest on the federal income tax refund and the gain on the sale of Madison company school bonds. This will be:

= $700 + $200 + $500

= $1400

Therefore, Heather must report gross income in the amount of $1400. The correct option is D.