In the case of interest income from state and Federal bonds, which are true and which are false?I.Interest on United States Government bonds received by a state resident cannot be subject to that state’s income tax.II.Interest on United States Government bonds are not subject to Federal income tax.III.Interest received on bonds issued by State A received by a resident of State B cannot be subject to income tax in State B. Solution I is true whereas II and III are false (i) federal statute prohibits the states from taxing United States Government bonds ( just as state bond interest is not subject to Federal income tax) (II) The federal government does tax its own bonds. (III) And there is no Statutory or Constitutional limitations on the states taxing each other\'s obligation.