7. In April 1976, P purchased Series E bonds at a cost of $5,000. She did not re

Question

7. In April 1976, P purchased Series E bonds at a cost of $5,000. She did not report the income annually. When the bonds mature in 2017 P will receive $40,000 and will have to report a gain of $35,000. P's tax planning options include a. shifting the $35,000 of income to a year of her choice by exchanging the Series E bonds for Series EE and redeeming them at that later date shifting the $35,000 of income to a year of her choice by exchanging the Series E bonds for Series HH and redeeming them at a later date. There are no remedies: P must report the gain as taxable income. a and b b. ngtheSnesE aandareno remedies Preu em pont en gatala erabley

Explanation / Answer

Here option is d. That both a and b are taken as option to be as follows

a) shifting $35000 of income to a year of her by exchanging the series E bonds for series EE redeeming that later date.

b) shifting $ 35000 of income to a year of her by exchanging the series E bonds for series HH redeeming that later date.

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