Question

Sally received $78,300 of compensation from her employer and she received $540 of interest from a corporate bond. What is the amount of Sally's gross income from these items?

Answer 1

Answer: The amount of sally's gross income from these items is $78,300

Explanation:

Information provided from the question;

Amount received from employer as compensation = $78,300

Amount received as interest from a corporate bond = $540

Gross income is defined as the sum of all wages, salaries, profits, interest payments, rents, and other forms of earnings, before any deductions or taxes. However, the interest income earned from municipal bonds is exempted from all federal income taxes regardless of one's tax bracket. Therefore, the amount of Sally's gross income from these items is $78,300