Marlene, a cash basis taxpayer, invests in Series EE U.S. government savings bonds and bank certificates of

Question:

Marlene, a cash basis taxpayer, invests in Series EE U.S. government savings bonds and bank certificates of deposit (CDs). Determine the tax consequences of the following on her 2013 gross income:
a. On September 30, 2013, she cashed in Series EE bonds for $10,000. She purchased the bonds in 2003 for $7,090. The yield to on the bonds was 3.5%.
b. On July 1, 2012, she purchased a CD for $10,000. The CD matures on June 30, 2014, and will pay $10,816, thus yielding a 4% annual return.
c. On July 1, 2013, she purchased a CD for $10,000. The date on the CD was June 30, 2014, when Marlene would receive $10,300?
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...