Debra Owned City of Long Beach Bonds That Were Issued

Question 122
Multiple Choice

Debra owned City of Long Beach bonds that were issued several years ago to pay for basic government services. She received $3,800 of interest income from the bonds in the current year. Due to a change in the market interest rate, she was able to sell the bonds at a $2,100 gain. How much gross income should Debra report from these transactions? A) $5,900 B) $3,800 C) $2,100 D) 0