What amount of interest will have to include in tax returns

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Reference no: EM132756991

Question: Ms. Marilyn Lox invests in a newly issued debt instrument on April 1, 2018. It has a maturity value of $50,000, matures on March 31, 2022, and pays interest at an annual rate of 5 percent. The terms of the instrument call for payment of interest for the first two and one-half years on September 30, 2020. The remaining interest is paid at the maturity date of the instru- ment. What amount of interest will Ms. Lox have to include in her tax returns for each of the years 2018 through 2022?

Reference no: EM132756991

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