You've borrowed $20,500 on margin to buy shares in disney, which is now selling at $41 per share. your account starts at the initial margin requirement of 50%. the maintenance margin is 35%. two days later, the stock price falls to $37.50 per share.

On september 1, 2016, steve loaned brett $2,000 at 12% interest compounded annually. steve is not in the business of lending money. the note stated that principal and interest would be due on august 31, 2018. in 2018, steve received $2,508.80 ($2,000 principal and $508.80 interest). steve uses the cash method of accounting. what amount must steve include in income on his income tax return?