In the Case of Interest Income from State and Federal

question 59

Multiple Choice

In the case of interest income from state and Federal bonds:

• A) Interest on United States government bonds received by a state resident can be subject to that state's income tax.
• B) Interest on United States government bonds is subject to Federal income tax.
• C) Interest on bonds issued by State A received by a resident of State B cannot be subject to income tax in State B.
• D) All of these are correct.
• E) None of these are correct.

---

Definitions:

Object Permanence

The understanding that objects continue to exist even when they cannot be observed directly.

Sensorimotor

Relating to or involving both sensory and motor functions or pathways, often used in reference to a stage in early child development.

Preoperational

A stage in Piaget's theory of cognitive development where children from ages 2 to 7 have increasing mental representation but do not yet understand concrete logic.

Concrete Operational

This term refers to Piaget's stage of cognitive development where children aged 7 to 11 years can think logically about concrete events and understand the concept of conservation.