In December 2019, Todd, a cash basis taxpayer, paid $1,200 fire insurance for the calendar year 2020 on a building he held for rental income. Todd deducted the $1,200 insurance premiums on his 2019tax return. He had $150,000 of taxable income that year. On June 30, 2020, he sold the building and, as a result, received a $500 refund on his fire insurance premiums. As a result of the above:

a. Todd should amend his 2019 return and claim $500 less insurance expense.
b. Todd should include the $500 in 2020 gross income in accordance with the claim of right doctrine.
c. Todd should add the $500 to his sales proceeds from the building.
d. Todd should include the $500 in 2020 gross income in accordance with the tax benefit rule.
e. None of these choices are correct.

Suppose the government decides to issue a new savings bond that is guaranteed to double in value if you hold it for 20 years. assume you purchase a bond that costs $25. a. what is the exact rate of return you would earn if you held the bond for 20 years until it doubled in value? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) b. if you purchased the bond for $25 in 2017 at the then current interest rate of .27 percent year, how much would the bond be worth in 2027? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) c. in 2027, instead of cashing in the bond for its then current value, you decide to hold the bond until it doubles in face value in 2037. what annual rate of return will you earn over the last 10 years? (do not