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Exercise 4-20 (Algorithmic) (LO. 2) On January 1, 2022, Kunto, a cash basis taxpayer, pays $88,758 for a 24-month certif
Posted: Tue Jul 05, 2022 11:49 am
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- Exercise 4 20 Algorithmic Lo 2 On January 1 2022 Kunto A Cash Basis Taxpayer Pays 88 758 For A 24 Month Certif 1 (44.16 KiB) Viewed 11 times
Exercise 4-20 (Algorithmic) (LO. 2) On January 1, 2022, Kunto, a cash basis taxpayer, pays $88,758 for a 24-month certificate of deposit. The certificate is priced to yield 4% (the effective interest rate) with interest compounded annually. No interest is paid until maturity, when Kunto receives $96,000. Round all calculations to the nearest dollar. a. Compute Kunto's gross income from the certificate for 2022. $ 3,550 b. Compute Kunto's gross income from the certificate for 2023. X