Steven, a cash basis si
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Steven, a cash basis single taxpayer, earned $20 interest on his savings account, $200 of prepaid interest,
$150 interest on a Certificate of Deposit, and $30 interest on money loaned to his nephew. Calculate the
amount of interest income Steven must report on his income tax return.
O a. $170
b. $200
c. $370
O d. $400
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