Stacia, a single cash basis taxpayer, received $20 in interest from her savings account, $150 in interest on corporate bond, $200 prepaid interest, $750 in interest on municipal bonds. Calculate the amount of taxable interest Stacia must report on her federal income tax return.

Stacia, a single cash basis taxpayer, received $20 in interest from her savings account, $150 in interest on corporate bond, $200 prepaid interest, $750 in interest on municipal bonds. Calculate the amount of taxable interest Stacia must report on her federal income tax return.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 6CPA

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Question

Stacia, a single cash basis taxpayer, received $20 in interest from her savings account, $150 in interest on
corporate bond, $200 prepaid interest, $750 in interest on municipal bonds. Calculate the amount of taxable
interest Stacia must report on her federal income tax return.
a. $170
b. $370
C. $920
d. $950

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