Answer:
$300
Explanation:
We know that The State of Wyoming and City of Laramie bonds are not taxable, so we just caculate the interest income that are taxible into the gross income:
$200 from Ford Motor Co. + $100 from U.S. Treasury bonds
= $300
So $300 of the interest received will be included in gross income
Answer:
$300
Explanation:
According to the Internal Revenue Service (IRS), interest on a state or local government obligation may be tax-exempt even if the obligation is not a bond.
Therefore the interest received that will be included in gross income will exclude interest income from the following investments: $400 from State of Wyoming bonds and $50 from City of Laramie bonds.
$100 from U.S. Treasury bonds are taxable at federal level, hence will be included.
Therefore taxable amount = $100 from treasury bonds and $200 from Ford Motor Co.
