On January 1, 2023, Kunto, a cash basis taxpayer, pays $142, 382 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 $154,000. Round all calculations to the nearest dollar. a. Compute Kunto's gross income from the certificate for 2023. Sfill in the blank 1 b. Compute Kunto's gross income from the certificate for 2024. Sfill in the blank 2
On January 1, 2023, Kunto, a cash basis taxpayer, pays $142, 382 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 $154,000. Round all calculations to the nearest dollar. a. Compute Kunto's gross income from the certificate for 2023. Sfill in the blank 1 b. Compute Kunto's gross income from the certificate for 2024. Sfill in the blank 2
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 21CE
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