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At the beginning of his current tax year, David invests $13,030 in original issue U.S. Treasury bonds with a $10,000 face value that mature in
At the beginning of his current tax year, David invests $13,030 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 20 years. David receives $500 in interest ($250 every six months) from the Treasury bonds during the current year, and the yield to maturity on the bonds is 3 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 |
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