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On January 1 , 2 0 2 3 , Kunto, a cash basis taxpayer, pays $ 6 6 , 5 6 8 for a 2

On January 1,2023, Kunto, a cash basis taxpayer, pays $66,568 for a 24-month certificate of deposit. The certificate is priced to yield 4%(the effective interest rate) with interest compounded annually. No interest is paid until maturity, when Kunto receives $72,000.

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