The Amount of Interest Income a Taxpayer Recognizes When He

question 66

Multiple Choice

The amount of interest income a taxpayer recognizes when he redeems a U.S. savings bond is:

• A)the excess of the taxpayer's basis in the bonds over the bond proceeds
• B)the bond proceeds
• C)the excess of the bond proceeds over the taxpayer's basis in the bonds
• D)the taxpayer's basis in the bonds
• E)none of these

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Definitions:

Electronic Shopping Cart

A feature of online stores that allows users to select and accumulate items they wish to purchase virtually before proceeding to checkout.

Notary

A public officer authorized to witness the signing of documents and to administer oaths, ensuring the authenticity of the signatures.

Acknowledgment

The official recognition by a notary public that another’s signature was made by that party’s free will. The acknowledgment is accomplished when the notary has signed the document and added the official seal to it.

Cyber-Agreement

A contract or agreement formed and existing in a digital format, often executed online.