Doug and Pattie Received the Following Interest Income in the Current

question 80

Multiple Choice

Doug and Pattie received the following interest income in the current year: $$\begin{array} { l r } \text { Savings account opened at Greenbacks Bank } & \$ 4,000 \\\text { U.S.Treasury bonds } & 250 \\\text { Interest on State of Iowa bonds } & 200 \\\text { Interest on Federal tax refund } & 150 \\\text { Interest on state income tax refund } & 75\end{array}$$ 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?

• A)$4,775.
• B)$4,675.
• C)$4,575.
• D)$4,300.
• E)None of these.

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Definitions:

Covenants

Legally enforceable promises contained in a contract or agreement.

Competing

Engaging in an effort to win or succeed against others, often in business, sports, or other areas of life.

Option Agreements

Legal contracts that give the holder the right, but not the obligation, to buy or sell an asset at a predetermined price and date.

Assignment of Rights

The transfer of rights or interests in a contract or property from one party to another.