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At the beginning of his current tax year, David invests $12,160 in original issue US...

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Accounting

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At the beginning of his current tax year, David invests $12,160 in original issue US Treasury bonds with a $10,000 face value that mature in exactly 20 years. David receives $1,000 in interest ($500 every six months) from the Treasury bonds during the current year. and the yield to maturity on the bonds is 8 percent. (Round your intermediate calculations to the nearest whole dollar amount) How much interest income will he report this year if he elects to amortize the bond premium? Adjusted Basis Semiannual of Bond at Beginning Interest Premium Reported Period of Received Amortization Interest Semiannual Period 1 $ 12.160 $ 145 486 2 12,160 500 24 476 Yearly Total $ 1.000 IS 38 5 962 Radicate no one was peces corrected 500

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