Question: On February 13 Mr Dega invested 75 000 in TIPS paying

On February 13, Mr. Dega invested $75,000 in TIPS paying 3.5 percent yearly interest. During the year, Mr. Dega received two cash interest payments totaling $2,742. On December 31, the adjusted principal amount of the TIPS was $76,038.
a. How much interest income from the TIPS does Mr. Dega recognize this year?
b. What is Mr. Dega’s tax basis in his TIPS investment at the beginning of next year?



Sale on SolutionInn
Sales0
Views94
Comments
  • CreatedNovember 03, 2015
  • Files Included
Post your question
5000