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  3. a. marlene, a cash basis taxpayer, invests in seri

A. Marlene, a cash basis taxpayer, invests in Series EE U.S Government savings bonds and...

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Accounting

A. Marlene, a cash basis taxpayer, invests in Series EE U.S Government savings bonds and bank certificates of deposits (CDS). Determine the tax consequences of the following on her 2023 gross income:

  1. On September 30th, 2023, she cashed in Series EE Bonds for $10,000. She purchased the bonds in 2013 for $7,090. Th yield to maturity on the bonds was 3.5%.
  2. On July 1st, 2022, she purchased a 24-month CD for $10,000. The CD matures on June 30th, 2024, and will pay $10,816, yielding a 4% annual return.
  3. On July 1st, 2023, she purchased a 12-month CD for $10,000. The maturity date on the CD was June 30th, 2024, when Marlene will receive $10,3000.

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