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Sandra, a California taxpayer receives municipal bond interest of $750 from the State of Ohio. On...

Sandra, a California taxpayer receives municipal bond interest of $750 from the State of Ohio. On California form CA, this municipal bond interest would require an adjustment that

is either a positive or negative adjustment.

subtracts the income from Federal AGI.

is neither positive or negative adjustment.

adds the income to Federal AGI.

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Answer #1

option C

c. is neither positive or negative adjustment.

it is not allowed by any state to tax municipal bond interest issued by U.S. territories

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