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Gerry bought a T-bill for $940. It matured 175 days later for $1,000. The $60 difference is taxed as:

  1. Gerry bought a T-bill for $940. It matured 175 days later for $1,000. The $60 difference is taxed as:

    1.      Dividend income

    2.     Capital gain

    3.      Interest income

    4.     Taxable capital gain.

Solutions

Expert Solution

Difference in t-Bill is considered as Capital Gain, and it is Taxable.

Therefore, (d) Taxable Capital Gain

jeff jeffy answered 2 years ago
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