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Interest from which of the following types of bonds is included in federal taxable income? State of California bond City of New Orleans bond Bond of the Commonwealth of Puerto Rico S. Treasury Bond All of the above are excluded from income 39.Kate acquires a principal residence in 2016 for $200,000 secured by a $180,000 mortgage. In 2020, Kate catches the coronavirus and misses work for 3 months. Her employer stops paying her after 10 days. In 2020 when the mortgage balance is $170,000, Kate and the bank revise her terms and lower the loan balance to $150,000. The market value of the home remains above $200,000. How much cancellation of debt income will Kate recognize? $0 $20,000 $10,000 $150,000 $170,000

Interest from which of the following types of bonds is included in federal taxable income? State of California bond City of New Orleans bond Bond of the Commonwealth of Puerto Rico S. Treasury Bond All of the above are excluded from income 39.Kate acquires a principal residence in 2016 for $200,000 secured by a $180,000 mortgage. In 2020, Kate catches the coronavirus and misses work for 3 months. Her employer stops paying her after 10 days. In 2020 when the mortgage balance is $170,000, Kate and the bank revise her terms and lower the loan balance to $150,000. The market value of the home remains above $200,000. How much cancellation of debt income will Kate recognize? $0 $20,000 $10,000 $150,000 $170,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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21.Interest from which of the following types of bonds is included in federal taxable income?

  • State of California bond
  • City of New Orleans bond
  • Bond of the Commonwealth of Puerto Rico
  • S. Treasury Bond
  • All of the above are excluded from income

39.Kate acquires a principal residence in 2016 for $200,000 secured by a $180,000 mortgage. In 2020, Kate catches the coronavirus and misses work for 3 months. Her employer stops paying her after 10 days. In 2020 when the mortgage balance is $170,000, Kate and the bank revise her terms and lower the loan balance to $150,000. The market value of the home remains above $200,000. How much cancellation of debt income will Kate recognize?

  • $0
  • $20,000
  • $10,000
  • $150,000
  • $170,000
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