Chapter 5

The Widow Smythe has option of receiving $100,000 now or $12,000/yr for 10 years. Amount includible as interest if she elects installment plan is $12,000 - ($100,000/10 yrs) = $2,000/yr ... US Savings Bonds. For a cash basis taxpayer, Savings Bonds interest may be taxed either: ................
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