On June 1, 2022, Judith purchased a $10,000 corporate bond at par value. She purchased...
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Accounting
On June 1, 2022, Judith purchased a $10,000 corporate bond at par value. She purchased the bond in between interest dates, as the bond pays annual interest of 5% on September 1 of each year. At the time of purchase, Judith paid $374 in accrued interest. On September 1, 2022, she received a $500 annual interest payment on the bond. This was Judith's only interest income for the year.
What is the total amount of taxable interest that should be reported on page 1 of Judith's Form 1040?
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