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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

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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 following on her 2020 gross income. If an amount is zero, enter "0". a. On September 30, 2020, she cashed in Series EE bonds for $10,000. She purchased the bonds in 2010 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 2020 gross income from the bonds is 10,000 X Feedback Check My Work Lenders frequently make loans that require a payment at maturity of more than the amount of the original loan. The difference between the amount due at maturity and the amount of the original loan is actually interest but is referred to as original issue discount (OID). Under the general rules of tax accounting, the cash basis lender would not report the original issue discount as interest income until the year the amount is collected, although an accrual basis borrower would deduct the interest as it is earned. b. On July 1, 2019, she purchased a CD for $10,000. The CD matures on June 30, 2021, and will pay $10,816, yielding a 4% annual return The CD is subject to the original issue discount rules. Her 2020 gross income from the CD is $ Feedback Check My Work Partially correct c. On July 1, 2020, she purchased a CD for $10,000. The maturity date on the CD was June 30, 2021, when Marlene would receive $10,300. The CD is not subject to the original issue discount rules. Her 2020 gross income from the CD is $ Feedback

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