Joshua, a cash basis taxpayer, invest in Series EE U.S. Government savings bonds and bank certificates of deposit (CDs). Determine the tax consequences of the following on her gross income. On August 31, 2020, he cashed in Series EE government savings bonds for $20,000. He purchased the bonds in 2012 for $17,400. The yield to maturity on the bonds was 3.5%. Joshua did not elect to take the annual increments in value into income. In your answer - do not use dollar signs or indicate decimals places