Answer: $300
Explanation:
Based on the options that are given in the question, it should be noted that the interest on Montgomery County bonds used to build a bridge, interest on the United States Treasury notes and the common stock dividend in IBM Corporation common stock (no cash option) are not taxable.
Therefore, the amount of taxable income should Jay report from these amounts will be $300 which is the gain on sale of Montgomery County bonds as this is taxable.
