Lebron received $50,000 of compensation from his employer and he received $400 of interest from a municipal bond. What is the amount of Lebron's gross income from these items?
A) $0.
B) $400.
C) $50,000.
D) $50,400.

Question

Quizplus · Accepted Answer

$50,000 compensation. The interest income is excluded from gross income because it is interest from a municipal (tax exempt) bond.

Lebron Received $50,000 of Compensation from His Employer and He