[Solved] Jerry Purchased a U
Jerry purchased a U.S. Series EE savings bond for $744. The bond has a maturity value in 10 years of $1,000 and yields 3% interest. This is the first Series EE bond that Jerry has ever owned.
A)Jerry can defer the interest income until the bond matures in 10 years.
B)Jerry must report ($1,000 - $744)/10 = $25.60 interest income each year he owns the bond.
C)The interest on the bonds is exempt from Federal income tax.
D)Jerry can report all of the $256 as a capital gain in the year it matures.
E)None of these.
Explore our library and get Taxation Homework Help with various study sets and a huge amount of quizzes and questions