Question: On January 1 , 2 0 2 2 , Kunto, a cash basis taxpayer, pays $ 6 8 , 4 1 7 for a 2

On January 1,2022, Kunto, a cash basis taxpayer, pays $68,417 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 $74,000.

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