2. At the beginning of his current tax year, David invests $12,430 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 20 years. David receives $800 in interest ($400 every six months) from the Treasury bonds during the current year, and the yield to maturity on the bonds is 6 percent. (Round your intermediate calculations to the nearest whole dollar amount.)

a. How much interest income will he report this year if he elects to amortize the bond premium?

Semiannual Period	Adjusted Basis of Bond at Beginning of Semiannual Period	Interest Received	Premium Amortization	Reported Interest
1	?	?	?	?
2	?	?	?	?
Yearly Total		?	?	?

3. For 2017, Sherri has a short-term loss of $2,470 and a long-term loss of $6,300.

a. How much loss can Sherri deduct in 2017?

Deductible loss: ____?__

5. Zach and Melissa Nieland file a joint tax return, and they itemize deductions. Assume their marginal tax rate on ordinary income is 25 percent. The Nielands incur $2,700 in miscellaneous itemized deductions, excluding investment expenses. They also incur $2,000 in noninterest investment expenses during the year. What tax savings do they receive from the investment expenses under the following assumptions: (Round your answer to the nearest whole dollar amount.)

a. Their AGI is $93,250.

Tax savings from investment expenses: ____?__