What is the minimum amount of interest income

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Problem 1: What is the minimum amount of interest income that Luigi must recognize for tax purposes in 2019 and 2020?

Luigi, on July 1, 2019, acquires a 3-year investment contract with a face value of $50,000. It matures on June 30, 2022, with interest accruing at 5 percent per annum. The interest will be paid at maturity.

Reference no: EM132906510

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