Dunbar (issuer): Effective Nominal Discount Date Interest (9%) Interest (8%) Amortization Balance $48,055 48,380 48,734 49,120 49,541 1/1/14 1/1/15 1/1/16 1/1/17 1/1/18 1/1/19 $4,000 4,000 4,000 $4,325 $325 4,354 354 4,386 4,421 4,459 386 4,000 4,000 421 459 50,000 Garfield (purchaser): Effective Nominal Discount Date Interest (10%) Interest (8%) Amortization Balance 1/2/16 1/1/17 1/1/18 1/1/19 $47,513 48,264 $4,751 $4,000 $751 4,826 4,000 4,000 826 49,090 4,909 909 50,000* *Adjusted for rounding.

Dunbar (issuer): Effective Nominal Discount Date Interest (9%) Interest (8%) Amortization Balance $48,055 48,380 48,734 49,120 49,541 1/1/14 1/1/15 1/1/16 1/1/17 1/1/18 1/1/19 $4,000 4,000 4,000 $4,325 $325 4,354 354 4,386 4,421 4,459 386 4,000 4,000 421 459 50,000 Garfield (purchaser): Effective Nominal Discount Date Interest (10%) Interest (8%) Amortization Balance 1/2/16 1/1/17 1/1/18 1/1/19 $47,513 48,264 $4,751 $4,000 $751 4,826 4,000 4,000 826 49,090 4,909 909 50,000* *Adjusted for rounding.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter20: Income Taxation Of Trusts And Estates

Section: Chapter Questions

Problem 15CE

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