Mrs. Nunn, who has a 28 percent marginal tax rate, earned $2,690 interest on a debt instrument

Question:

Mrs. Nunn, who has a 28 percent marginal tax rate, earned $2,690 interest on a debt instrument this year. Compute her federal income tax on this interest assuming that the debt instrument was:
a. An unsecured note from her son, who borrowed money from his mother to finance the construction of his home.
b. A certificate of deposit from a federal bank.
c. A 30-year General Electric bond.
d. A U.S. Treasury note.
e. A City of Memphis municipal bond.