How much unemployment compensation must Colten report as income?

To determine how much unemployment compensation Colten must report as income, it is important to recognize that generally, all unemployment benefits received are considered taxable income. The amount of unemployment compensation Colten received during the year would need to be reported as income on his tax return.

In this scenario, the correct answer indicates that Colten received a total of $4,000 in unemployment compensation. This amount aligns with the guideline that individuals must include the full amount of any unemployment benefits in their taxable income. Thus, if Colten indeed received $4,000 throughout the period he was unemployed, this is the amount he must report.

The other answer choices represent different figures that do not account for the total received by Colten. Understanding the taxability of unemployment benefits is essential, and it is crucial for taxpayers to keep track of the total amount received during the year for accurate income reporting.