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Canvas XCO Gabby is a cash basis taxpayer and had has the following 2020 investment activity: Interest: $ 5.000 in interest received on a corporate

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Canvas XCO Gabby is a cash basis taxpayer and had has the following 2020 investment activity: Interest: $ 5.000 in interest received on a corporate bond. $ interest received on an original issue discount bond. The OID interest accrual is $ 360 $ 500 paid as purchased interest on a corporate bond purchased on 11/1/20. Gabby received $ 1.500 in interest on 5/1/21 - Dividends: $ 2,000 received from Microsoft, a US company. Gabby held this stock for 3 years. $ 1,000 received from ABC Inc, a US company. Gabby held this stock for 6 months. $ 3,000 received from XYZ limited, a foreign company not listed on any US stock exchanges. On 9/1/20, Gabby received 90 shares of DEF company, a US company. This represents a 10% proportional stock dividend to all DEF shareholders. The market price of DEF was $ 100 per share on the date of this stock dividend. Gabby acquired 900 shares of DEF in 2010 for $ 45,000. Part a (3 points): How much interest income will Gabby recognize in 2020 for federal income tax purposes. Part b (3 points): How much Dividend Income will Gabby recognize in 2020 for federal income tax purposes? Partc (3 points): How much of the dividend income is considered "Qualified Dividends"? Part d (3 points). Assume that on 12/20/20. Gabby sells the 90 shares of DEF stock that she received on 9/1/20. Gabby sells these 90 shares for $ 110 per share. Calculate Gabby's gain or loss on this sale

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