State and local government-municipal bond interest


When a corporation distributes property to its shareholders, it:

A) may recognize either gain or loss.

B) may recognize gain, but never a loss.

C) may recognize a loss, but never a gain

D) never recognizes a gain or loss

In general interest income id fully taxable when received by taxpayer , however, the tax law provides an exclusion for interest earned on bonds issued by state and local government - municipal bond interest.

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Accounting Basics: State and local government-municipal bond interest
Reference No:- TGS080024

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