Ch. 7 Property Income
1. On July 1, 2021 Ms. Debra Duggins acquired a newly issued debt instrument with a maturity value of $80,000. It matures on June 30, 2027 and pays interest at an annual rate of 8%. Payment for the first three years of interest is due on June 30, 2024 with interest for the remaining Three years payable on the maturity date. What amount of interest will Ms. Duggins have to include in her tax returns for year of the years 2021 through 2027? (Note: Do not use compounding interest rate)
Year Interest included in Income
2021
2022
2023
2024
2025
2026
2027