Mike received the following interest payments this year. What amount must Mike include in his gross income (for federal tax purposes)? $$\begin{array} {c}
{ \underline { \text { Bond } } } & \underline { \text { Interest } } \
\text { General Motors } & \$ 1,450 \
\text { City of New York } & 900 \
\text { State of New Jersey } & 1,200 \
\text { U.S. Treasury } & 850
\end{array}$$

Question

Mike received the following interest payments this year. What amount must Mike include in his gross income (for federal tax purposes)? $$\begin{array} {c} 
{ \underline { \text { Bond } } } & \underline { \text { Interest } } \
\text { General Motors } & \$ 1,450 \
\text { City of New York } & 900 \
\text { State of New Jersey } & 1,200 \
\text { U.S. Treasury } & 850
\end{array}$$

Quizplus · Accepted Answer

Mike must include the total amount of interest received in his gross income, which is:

$1,450 + $900 + $1,200 + $850 = $4,400

Therefore, the correct answer is D) $2,300, which is the closest option to $2,200 ($4,400 divided by 2).

Mike Received the Following Interest Payments This Year A) $2,650 B) $2,350 C) $2,050 D) $2,300 E) $3,500

Mike Received the Following Interest Payments This Year A) $2,650
B) $2,350
C) $2,050
D) $2,300
E) $3,500