Which mike agreed to repay with interest

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Reference no: EM133650417

Question

Jeff loaned Mike $8,000, which Mike agreed to repay with interest. Mike is making monthly payments of $350 to Jeff, which includes $50 in interest. How should Jeff report this income? Jim is not required to report the income at all $50 as interest income and the remaining $300 as other income $50 as interest income; the remaining $300 is not taxable Jim must report the entire payment as interest income.

Reference no: EM133650417

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