On January 1, 2020, Scott’s employer gave him a City of Denver Bond and a City of Hong Kong (China) bond in compensation for his services. The Denver bond has a fair market value of $8,000 and pays interest of $400 that is attributable to Scott. The Hong Kong Bond has a fair market value of $10,000 and pays interest of $500 that is attributable to Scott. How much should Scott include in his Gross Income for 2020? Group of answer choices a)$8,400. b)$18,000. c)$18,500. d) $18,900.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter6: Business Expenses
Section: Chapter Questions
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On January 1, 2020, Scott’s employer gave him a City of Denver Bond and a City of Hong Kong (China) bond in compensation for his services. The Denver bond has a fair market value of $8,000 and pays interest of $400 that is attributable to Scott. The Hong Kong Bond has a fair market value of $10,000 and pays interest of $500 that is attributable to Scott. How much should Scott include in his Gross Income for 2020?
Group of answer choices
a)$8,400.
b)$18,000.
c)$18,500.
d) $18,900.
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