Greenbacks Bank also gave Doug and Pattie a cellular phone (worth $100) for opening the savings account. What amount of interest income should they report on their joint income tax return?

Greenbacks Bank also gave Doug and Pattie a cellular phone (worth $100) for opening the savings account. What amount of interest income should they report on their joint income tax return?

Doug and Pattie received the following interest income in the current year:

Savings account at Greenbacks Bank $4,000
United States Treasury bonds 250
Interest on State of Iowa bonds 200
Interest on Federal tax refund 150
Interest on state income tax refund 75

Greenbacks Bank also gave Doug and Pattie a cellular phone (worth $100) for opening the savings account. What amount of interest income should they report on their joint income tax return?



a. $4,775.
b. $4,675.
c. $4,575.
d. $4,300.
e. None of these.


Answer: c


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