What types of income must be reported under the Green Book guidelines?

The correct answer encompasses a comprehensive range of income types that must be reported under the Green Book guidelines. These include employment income, which covers salaries, wages, and any compensation received for services performed; business income, which refers to earnings from self-employment or running a business; investment income, which includes dividends, interest, and capital gains from the sale of assets; and foreign income, which involves any earnings received from sources outside of the domestic jurisdiction.

This inclusivity is crucial as it aligns with the overarching principles of comprehensive income taxation, ensuring that all forms of income are assessed for tax purposes regardless of their source. This thorough approach also helps to prevent evasion and ensures fairness across different types of earners.

Regarding the other choices, they either limit the scope of income types or do not account for the full range of income that should be reported according to the guidelines, which specifically aim for a broad and inclusive definition of taxable income.