During the current year, Eve receives the following interest payments:
How much gross income does Eve have from the interest payments?
$$\begin{array} { l r }
\text { City of Toronto, Ontario Bonds } & \$ 750 \
\text { Florida Tumpike Authority Bonds } & 420 \
\text { U.S. Virgin Islands Transportation Authority Bonds } & 630 \
\text { General Electric Corporate Bonds } & 850
\end{array}$$

Question

During the current year, Eve receives the following interest payments:
How much gross income does Eve have from the interest payments?
$$\begin{array} { l r } 
\text { City of Toronto, Ontario Bonds } & \$ 750 \
\text { Florida Tumpike Authority Bonds } & 420 \
\text { U.S. Virgin Islands Transportation Authority Bonds } & 630 \
\text { General Electric Corporate Bonds } & 850
\end{array}$$

Quizplus · Accepted Answer

Eve's gross income from the interest payments is $1,600. This is because the interest payments from the City of Toronto, Ontario Bonds, Florida Tumpike Authority Bonds, and U.S. Virgin Islands Transportation Authority Bonds are all tax-free. However, the interest payments from the General Electric Corporate Bonds are taxable. Therefore, Eve's gross income from the interest payments is $750 + $420 + $630 + $850 = $1,600.

During the Current Year, Eve Receives the Following Interest Payments