On June 1, 2018, Sophia purchased a ten-year, $10,000 bond. The bond has a stated interest rate of 5%, payable annually on June 1. On May 1, 2019, 334 days from the last interest payment, Sophia sold the bond. How much accrued interest is included in the selling price?

$0

$43

$458

$500

Kyle, a single U.S. citizen taxpayer, paid foreign tax on investment income. Which of the following conditions would make him ineligible to claim the Foreign Tax Credit without filing Form 1116?

The amount of foreign tax Kyle paid is $405.

Kyle has signature authority over a foreign account that had an aggregate balance of more than $10,000 during the year.

Kyle received information about the amount of foreign income and foreign taxes paid on Form 1099-DIV.

The tax was paid on income generated from foreign investments held in a mutual fund Kyle owns.

Bryan (42) purchased a $10,000, 13-week Treasury bill as short-term investment. He paid $9,938 for the security, which was issued on June 13, 2019. When the bill matured on September 12, 2019, Bryan received $10,000. How will he report the $62 in interest that he earned on this investment?

As accrued interest on Schedule B, Interest and Ordinary Dividends.

As tax-exempt interest on line 2a of his Form 1040.

As taxable interest on line 2b of his Form 1040.

The income is not taxable or reportable on Bryan's return.