Which Item Below Is a Nontaxable Exclusion from Gross Income

question 71

Multiple Choice

Which item below is a nontaxable exclusion from gross income?

• A)Municipal bond interest
• B)Interest on U.S.Series EE bonds
• C)Alimony received
• D)Bingo winnings

---

Definitions:

Military Goods

Products and materials used or consumed by the armed forces, such as weapons, equipment, and uniforms.

Civilian Goods

Products and services that are produced and intended for use by civilians rather than military or defense purposes.

Opportunity Cost

Opportunity cost represents the value of the next best alternative that must be foregone when making a decision, highlighting the trade-off between different choices.

Submarines

Underwater naval vessels capable of extensive underwater operations.