Doug and Pattie received the following interest income in the current year: Greenbacks Bank also gave Doug and Pattie a cellular phone (worth $100)for opening the savings account.What amount of interest income should they report on their joint income tax return?

Question

Doug and Pattie received the following interest income in the current year:  Greenbacks Bank also gave Doug and Pattie a cellular phone (worth $100)for opening the savings account.What amount of interest income should they report on their joint income tax return?

Quizplus · Accepted Answer

The value of the cell phone is treated as a payment for the use of Doug and Pattie's money,and therefore is interest income.Only the interest on State of Iowa bonds may be excluded from their gross income.

Doug and Pattie Received the Following Interest Income in the Current