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Marlene, a cash basis taxpayer, invests in Series EE U.S. government savings bonds and bank certificates of deposit (CDs). Determine the tax consequences of the

Marlene, a cash basis taxpayer, invests in Series EE U.S. government savings bonds and bank certificates of deposit (CDs). Determine the tax consequences of the following on her 2016 gross income.

If an amount is zero, enter "0".

a. On September 30, 2016, she cashed in Series EE bonds for $10,000. She purchased the bonds in 2006 for $7,090. The yield to maturity on the bonds was 3.5%.

The Series EE bonds are not subject to the original issue discount rules. Her 2016 gross income from the bonds is $ ?

b. On July 1, 2015, she purchased a CD for $10,000. The CD matures on June 30, 2017, and will pay $10,816, thus yielding a 4% annual return.

The CD is subject to the original issue discount rules. Her 2016 gross income from the CD is $ ?

c. On July 1, 2016, she purchased a CD for $10,000. The maturity date on the CD was June 30, 2017, when Marlene would receive $10,300.

The CD is not subject to the original issue discount rules. Her 2016 gross income from the CD is $ ?

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