Each of the numbered items below is accorded only one of the following lettered treatments. Use the existing law as it applies to the current year, match the best answer to the statements below.
-Frank receives $1,000 interest income from City of St Louis bonds.

Question

Quizplus · Accepted Answer

Interest income from municipal bonds issued by a state or city is generally exempt from federal income tax. Therefore, Frank's interest income from City of St Louis bonds is fully excluded from his gross income.

Each of the Numbered Items Below Is Accorded Only One