a cash-method calendar year taxpayer
a cash-method calendar year taxpayer On July 1, 2001, Wally, a cash-method calendar year taxpayer, purchases a two-year bond for $1.0 million from Citibank. The Citibank bond provides for interest at a rate of 10% per annum interest compounded semiannually with all interest and principal payable on December 31, 2002. In 2001 Wally will recognize …