Question

Lebron received $78,300 of compensation from his employer and he received $540 of interest from a municipal bond. What is the amount of Lebron's gross income from these items?

Answer 1

The amount of Lebron's gross income from these items is $78,300

Step-by-step explanation:

Information provided from the question;

Amount received from employer as compensation = $78,300

Amount received as interest from municipal bond = $540

Gross income is defined as the sum of all wages, salaries, profits, interest payments, rents, and other forms of earnings, before any deductions or taxes. However, the interest income earned from municipal bonds is exempted from all federal income taxes regardless of one's tax bracket. Therefore, the amount of Lebron's gross income from these items is $78,300