Tax Drill - Original Issue Discount On January 1, 2020, Kunto, a cash basis taxpayer,...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Tax Drill - Original Issue Discount On January 1, 2020, Kunto, a cash basis taxpayer, pays $46,228 for a 24-month certificate. The certificate is priced to yield 4% (the effective interest rate) with interest compounded annually. No interest is paid until maturity, when Kunto receives $50,000. In your computations, round any amounts to the nearest dollar Kunto has s 1,849.12 X income for 2020 and 192,288 X for 2021. Feedback Myrna and Geoffrey filed a joint tax return in 2019. Their AGI was $85,000, and itemized deductions were $25,100, which included $7,000 in state income tax. In 2020, they received a $1,800 refund of the state income taxes that they paid in 2019. The standard deduction for married filing jointly in 2019 was $24,400. Under the tax benefit rule, 0 X of the state income tax refund is included in gross income in 2020. Freither
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
