Which of the following issuers' bonds would be subject to both federal and state income taxes?
A) City of Chicago
B) Saline, Michigan School District
C) Apple, Inc.
D) U.S. Treasury

Question

Quizplus · Accepted Answer

Corporate bonds, such as those issued by Apple, Inc., are subject to both federal and state income taxes, unlike municipal bonds (issued by cities or school districts) and U.S. Treasury bonds, which have different tax treatments.

Which of the Following Issuers' Bonds Would Be Subject to Both