On June 30, Company issues5% , five-year bonds payable with at face value of $60,000 . The bonds are issued at face value and pay interest on June 30 and December 31

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?