Question: On July 1 , 2 0 2 3 , Jon Laxtor acquires a newly issued investment contract with a maturity value of $ 1 0

On July

1, 2023,

Jon Laxtor acquires a newly issued investment contract with a maturity value of $

100, 000 .

It matures on June

30, 2028,

with interest accruing at

8

percent per annum.

Interest is paid for the first one and one

-

half years on December

31, 2024 .

The remaining interest will be paid at maturity. With respect to the minimum amount of interest that Jon must recognize for tax purposes, which of the following statements is correct?

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