Question

Holly inherited $10,000 of City of Atlanta bonds in February. In March, she received interest of $500, and in April she sold the bonds at a $200 gain. Holly re-deemed Series EE U.S. savings bonds that she had purchased several years ago. The accu-mulated interest totaled $800. Holly received $300 of interest on bonds issued by the City of Quebec, Canada. What amount, if any, of gross income must Holly report

Answer 1

$1,300

Step-by-step explanation:

Calculation for the gross income that Holly must report

Using this formula

Gross income=Bonds gain + Accumulated interest + Interest on bonds received

Let plug in the formula

Gross Income= $200 + $800 + $300

Gross Income= $1,300

Therefore the gross income that Holly must report will be $1,300