2017, Kunto, a cash basis taxpayer, pays $46,228 for a 24-month certificate. ate is priced to yield 4% (the effective interest rate) with interest compounded 1. On J anuary 1, The certific aturity, when Kunto receives $50,000 (remember annually. No interest is paid until m second year compounding). In your computations: a. Compute Kunto's gross income from the certificate for 2017. b. Compute Kunto's gross income from the certificate for 2018. Round any amounts to the nearest dollar