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

Municipal bond interest is generally exempt from federal income tax, so only the $50,000 of compensation is included in Lebron's gross income.

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