You recened partial credit in the prevous attempt Required Information The follo

Question

You recened partial credit in the prevous attempt Required Information The following information applies to the questions displayed below At the beginning of his current tax year, David invests $1700 in oniginal Issue U.S. Treasury bonds with a $10.000 face Part 2 e2 value that mature in exactly 10 years David recetves $560 in interest ($280 every stx monchs) from the Treasury bonds the nearest whole doller amount.) b. How much imnerest will he report this year it he does not elect to amortize the bond premume Preenium Reported Semiannual Receve 3 4 5 6 7 8 9 0

Explanation / Answer

B.

If David does not elect to amortize the bond, he will simply report the entire $560 payment he receives as interest income for the year.

Semiannual period adjusted basis of bond at beginning of semiannual period interest received premium Amortization reported interest 1 11,700 280 0 280 2 11,700 280 0 280 Yearly total 560 560

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