A Interest Income 8 8. Generally, interest income from the following bonds is tax exempt EXCEPT: A. Local government bonds B. State government bonds C. Qualified private activity bonds D. U.S Savings bonds 9 9. A taxpayer had municipal bond interest of $6,000, certificate of deposit interest of $4,000, reinvested cor- porate bond interest of $2,000, mutual fund municipal bond interest of $7,000 and savings account interest of $1,000. How much is taxable interest? A. $3,000 B. $7,000 C. $20,000 D. $16,000