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Mrs. Nunn, who has a 24 percent marginal tax rate on ordinary income, earned $3,370 interest on a debt instrument this year. Required: Compute her
Mrs. Nunn, who has a 24 percent marginal tax rate on ordinary income, earned $3,370 interest on a debt instrument this year.
Required: Compute her federal income tax on this interest assuming that the debt instrument was: (Round your final answers to the nearest whole dollar amount.)
- An unsecured note from her son, who borrowed money from his mother to finance the construction of his home.
- A certificate of deposit from a federal bank.
- A 30-year General Electric corporate bond.
- A U.S. Treasury note.
- A City of Memphis municipal bond.
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