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Question - Mr. X buys a $5,000, 3 year bond on September 1, 2019 that will provide 3% interest annually. All interest will be paid to him on maturity. How much does he need to report on his 2019 and 2020 tax returns respectively?
a) 2019: $150; 2020: $300
b) 2019: $0; 2020: $150
c) 2019: $150; 2020: $150
d) Nothing in either year due to the fact that he will not receive the interest until 2021.
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