Samantha and Her Son, Brent, Are Cash Basis Taxpayers

question 44

True/False

Samantha and her son, Brent, are cash basis taxpayers.Samantha gave Brent a corporate bond with a face amount and fair market value of $10,000.On the date of the gift, March 31, 2019, the accrued interest on the bond was
$100.On December 31, 2019, Brent collected $400 interest on the bond.Brent must include in gross income the
$300 interest earned after the date of the gift.

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