Asked by e

4. Seymour reported $200 of municipal bond interest on line 2a, Form 1040. The municipal bond fund’s supplemental statement to the Form 1099-INT showed 80% of the interest was attributable to investments in California municipal bonds, and the remaining 20% was invested in municipal bonds in other states. Which of the following adjustments should be made on Part I, line 2b, of his Schedule CA (540)?

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Answered by GPT-5 mini AI
Add $40 on Part I, line 2b (column C). 20% of $200 = $40 — interest from out‑of‑state municipal bonds is taxable to California and must be added back.