A. federal taxes
B. local and state taxes
C. federal discounts
D. deferral premium
✅ The correct answer is option A.
Treasury securities are considered as exempted from federal taxes. The federal income tax is the tax levied by the United States Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts, and other legal entities. Federal income taxes are applied to all forms of earnings that make up a taxpayer’s taxable income, such as employment earnings or capital gains.
Treasury securities are considered as exempted from federal taxes. The federal income tax is the tax levied by the United States Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts, and other legal entities. Federal income taxes are applied to all forms of earnings that make up a taxpayer’s taxable income, such as employment earnings or capital gains.