Chapter 11. Investments-Homework
LO 1. Explain how interest income and dividend income are taxed.
1 What is the market rate of interest for a bond issue which sells for less than its par value?
a. Less than rate stated on the bond.
b. Equal to rate stated
Chp 10- deductions & losses- personal lesser of Cost Basis or Lower FMV (FMV before FMV after) less $100/event, less 10% AGI = Deduct from AGI EX. Hurricane
10/31/15 loss on Business side Comp AB=3000, before FMV=2000, after FMV=0, not insures comp = 3000
CLASS EXERCISE: MEDICAL EXPENSE DEDUCTION
TOTAL ALLOWANCE DEDUCTION
Medical costs reported in year 2 include the following:
Prescription Drugs $450
Herbal weight-loss supplements and vitamins recommended by physicians $1,200