During fiscal year 2012, Dioubate Cie earned $10,000 of interest revenue on an investment in a tax-free municipal bond. Which of the following items would be increased by the municipal bond revenue? a. Pre-Tax Income
b. Income Tax Expense
c. Taxable Income
d. Income Tax Payable
e. Deferred Tax Liabilities

a. Pre-Tax Income

Explanation:

Given that

The interest revenue earned is $10,000

So in the case when there is the municipal bond revenue so the pre tax income should be increased as there is an interest revenue so only this account should be increased

Therefore the correct option is a

Hence, the other options would be wrong

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer; buying the bill at a discount from the face value to be received at maturity;