A Taxpayer Can Exclude from Income Interest Received From

question 122

Multiple Choice

A taxpayer can exclude from income interest received from:

• A)Municipal bonds issued by the state.
• B)A seller-financed mortgage transaction.
• C)A credit union.
• D)A savings account established at a local bank.

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Definitions:

U.S.GAAP

United States Generally Accepted Accounting Principles, which are accounting standards used in the U.S. to prepare, present, and report financial statements.

Profitability

A rephrasing of profitability analysis, it refers to a company's ability to generate profit from its operations relative to its costs.

Productivity

A measure of efficiency that shows the amount of output produced per unit of input.

Liquidity

The ability of an asset to be quickly converted into cash without significant loss in value, or a company's ability to meet its short-term obligations.