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Questions 37 and 38 are based on the following information: Three years ago, on October 1st,, Aldo purchased a $13,000 strip bond for $11,952.56. The

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Questions 37 and 38 are based on the following information: Three years ago, on October 1st,, Aldo purchased a $13,000 strip bond for $11,952.56. The bond will mature on September 30th of this year. Aldo must account for the interest income earned from the strip bond on an accrual basis. What does this mean? a) Interest income earned on the bond can be accrued every three years for tax purposes. b) Interest income earned in the last calendar year should be reported on Aldo's tax return for last year. c) Aldo should report the entire amount of interest income earned on the bond this taxation year. d) Interest income earned on the bond up to the end of the first bond year must be reported on Aldo's tax return for two years ago

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