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Mr. Hayward Matthews invests in a newly issued debt instrument on April 1, 2020. It has a maturity value of $75,000, matures on March 31,

Mr. Hayward Matthews invests in a newly issued debt instrument on April 1, 2020. It has a maturity value of $75,000, matures on March 31, 2024, and pays interest at an annual rate of 6 percent. The terms of the instrument call for payment of interest for the first two and one-half years on September 30, 2022. The remaining interest is paid at the maturity date of the instrument.

Required:

YearActual Interest PaidInterest Reported on Tax Return
2020$ -$ -
2021--
2022
2023--
2024
Total$ -$ -
What amount of interest will Mr. Matthews have to include in his tax returns for each of the years 2020 through 2024?

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