tax accounting
posted by tim
purchased a bond on August 15, 2012 for $2,100. $200 of the purchase price represented accrued interest. She received $210 in interest income on the bond on December 1, 2012. What is the proper treatment of the $210 interest income for federal income tax purposes?
Respond to this Question
Similar Questions

college
I purchased a $1,000 five percent coupon bond that matures in 10 years. How much would my bond be worth if interest rates fall to 4% the day after I purchase the bond? 
Finance
You purchased a $1,000 five percent coupon bond that matures in 10 years. How much would your bond be worth if interest rates fall to 4% the day after you purchase the bond? 
accounting
You purchased a $1,000 five percent coupon bond that matures in 10 years. How much would your bond be worth if interest rates fall to 4% the day after you purchase the bond? 
Finance
On January 1, 2011 you bought a twoyear U.S. government bond with a principal (face value) of $1000 and a coupon rate of 6% with coupons paid on December 31, 2011 and December 31, 2012. The principal will be repaid on December 31, … 
Personal Finance
On December 1, 2004 a $1,000.00 bond, paying 6% interest on January 1st and July 1st of each year is purchased for $950.00. The bond is sold on December 5, 2005 for $980.00. What would be the total monetary return including both interest … 
economics (7)
Assume that a $1,000 bond issued in 2012 pays $100 in interest each year. What is the current yield on the bond if it can be purchased for Instructions: Enter your responses as a percent rounded to one decimal place. (a) $1,200? 
Economics (7)
Assume that a $1,000 bond issued in 2012 pays $100 in interest each year. What is the current yield on the bond if it can be purchased for Instructions: Enter your responses as a percent rounded to one decimal place. (a) $1,200? 
economics (7)
Assume that a $1,000 bond issued in 2012 pays $100 in interest each year. What is the current yield on the bond if it can be purchased for Instructions: Enter your responses as a percent rounded to one decimal place. (a) $1,200? 
economics (7)
Assume that a $1,000 bond issued in 2012 pays $100 in interest each year. What is the current yield on the bond if it can be purchased for Instructions: Enter your responses as a percent rounded to one decimal place. (a) $1,200? 
Accounting
On Sept. 1, 2012, Parsons Company purchased $84,000 10 year 7% government bonds at 100 plus accrued interest. The semiannual interest payment dates are June 30 and Dec. 31. Journalize the entry to record the bond purchase.