Choice "c" is correct. The wages of $18,000 and unemployment compensation are
both includable in gross income on Adler's current year income tax
return.
Choice "a" is incorrect. The unemployment compensation must be included in
gross income.
Choice "b" is incorrect. Municipal bond interest income is excluded from
gross income, and the unemployment compensation must be included in gross
income.
Choice "d" is incorrect. Municipal bond interest income is excluded from
gross income.
