On January 5,2015,Tim Purchased a Bond Paying Interest at 6

question 95

Multiple Choice

On January 5,2015,Tim purchased a bond paying interest at 6% for $30,000.On March 31,2015,he gave the bond to Jane.The bond pays $1,800 interest on December 31.Tim and Jane are cash basis taxpayers.When Jane collects the interest in December 2015:

• A)Tim must include all of the interest in his gross income.
• B)Jane must report $1,800 gross income for 2015.
• C)Jane reports $1,350 of interest income in 2015,and Tim reports $450 of interest income in 2015.
• D)Jane reports $450 of interest income in 2015,and Tim reports $1,350 of interest income in 2015.
• E)None of these is correct.

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Definitions:

Strings of Digits

Sequences of numerical digits, which can be used in various contexts such as passwords, mathematical calculations, or data entry.

Left Hand

The non-dominant hand for the majority of people, controlled by the right hemisphere of the brain, often associated with tasks requiring spatial and nonverbal processes.

Percentage

A mathematical term expressing a number or ratio as a fraction of 100, used to compare proportions.

Aphasic

Pertaining to aphasia, a condition characterized by the loss of the ability to understand or express speech, caused by brain damage.