<PAGE> PAGE 1
000 B000000 05/31/99
000 C000000 0000728374
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 AXP EXTRA INCOME FUND, INC.
001 B000000 811-3848
001 C000000 6126713800
002 A000000 IDS TOWER 10
002 B000000 MINNEAPOLIS
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002 D010000 55440
002 D020000 0010
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<PAGE> PAGE 2
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072 A000000 12
074 N000000 3892924
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077 J000000 N
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080 A000000 RELIANCE INSURANCE COMPANY
080 C000000 2500
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085 A000000 Y
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SIGNATURE LESLIE L. OGG
TITLE VICE PRESIDENT
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> AXP EXTRA INCOME FUND CLASS A
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> MAY-31-1999
<PERIOD-END> MAY-31-1999
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 0
<RECEIVABLES> 0
<ASSETS-OTHER> 3892924152
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3892924152
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 14949603
<TOTAL-LIABILITIES> 14949603
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4408321614
<SHARES-COMMON-STOCK> 708302389
<SHARES-COMMON-PRIOR> 679679514
<ACCUMULATED-NII-CURRENT> 763196
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 221184208
<ACCUM-APPREC-OR-DEPREC> (296471053)
<NET-ASSETS> 2814036886
<DIVIDEND-INCOME> 39984393
<INTEREST-INCOME> 376326585
<OTHER-INCOME> 0
<EXPENSES-NET> 42815125
<NET-INVESTMENT-INCOME> 373495853
<REALIZED-GAINS-CURRENT> (127843804)
<APPREC-INCREASE-CURRENT> (413763674)
<NET-CHANGE-FROM-OPS> (168111625)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 296255921
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 196364147
<NUMBER-OF-SHARES-REDEEMED> 217533478
<SHARES-REINVESTED> 49792206
<NET-CHANGE-IN-ASSETS> (268983271)
<ACCUMULATED-NII-PRIOR> 23077627
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 137241125
<GROSS-ADVISORY-FEES> 15574531
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 42955156
<AVERAGE-NET-ASSETS> 2853978227
<PER-SHARE-NAV-BEGIN> 4.58
<PER-SHARE-NII> .40
<PER-SHARE-GAIN-APPREC> (.58)
<PER-SHARE-DIVIDEND> .43
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 3.97
<EXPENSE-RATIO> .91
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> AXP EXTRA INCOME FUND CLASS B
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> MAY-31-1999
<PERIOD-END> MAY-31-1999
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 0
<RECEIVABLES> 0
<ASSETS-OTHER> 3892924152
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3892924152
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 14949603
<TOTAL-LIABILITIES> 14949603
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4408321614
<SHARES-COMMON-STOCK> 270896547
<SHARES-COMMON-PRIOR> 228496604
<ACCUMULATED-NII-CURRENT> 763196
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 221184208
<ACCUM-APPREC-OR-DEPREC> (296471053)
<NET-ASSETS> 1076149676
<DIVIDEND-INCOME> 39984393
<INTEREST-INCOME> 376326585
<OTHER-INCOME> 0
<EXPENSES-NET> 42815125
<NET-INVESTMENT-INCOME> 373495853
<REALIZED-GAINS-CURRENT> (127843804)
<APPREC-INCREASE-CURRENT> (413763674)
<NET-CHANGE-FROM-OPS> (168111625)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 98359518
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 113211748
<NUMBER-OF-SHARES-REDEEMED> 91218686
<SHARES-REINVESTED> 20406881
<NET-CHANGE-IN-ASSETS> (268983271)
<ACCUMULATED-NII-PRIOR> 23077627
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 137241125
<GROSS-ADVISORY-FEES> 5956044
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 42955156
<AVERAGE-NET-ASSETS> 1022056212
<PER-SHARE-NAV-BEGIN> 4.58
<PER-SHARE-NII> .37
<PER-SHARE-GAIN-APPREC> (.58)
<PER-SHARE-DIVIDEND> .40
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 3.97
<EXPENSE-RATIO> 1.67
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> AXP EXTRA INCOME FUND CLASS Y
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> MAY-31-1999
<PERIOD-END> MAY-31-1999
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 0
<RECEIVABLES> 0
<ASSETS-OTHER> 3892924152
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3892924152
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 14949603
<TOTAL-LIABILITIES> 14949603
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4408321614
<SHARES-COMMON-STOCK> 312738
<SHARES-COMMON-PRIOR> 397728
<ACCUMULATED-NII-CURRENT> 763196
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 221184208
<ACCUM-APPREC-OR-DEPREC> (296471053)
<NET-ASSETS> 1242987
<DIVIDEND-INCOME> 39984393
<INTEREST-INCOME> 376326585
<OTHER-INCOME> 0
<EXPENSES-NET> 42815125
<NET-INVESTMENT-INCOME> 373495853
<REALIZED-GAINS-CURRENT> (127843804)
<APPREC-INCREASE-CURRENT> (413763674)
<NET-CHANGE-FROM-OPS> (168111625)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 162431
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 159985
<NUMBER-OF-SHARES-REDEEMED> 284954
<SHARES-REINVESTED> 39979
<NET-CHANGE-IN-ASSETS> (268983271)
<ACCUMULATED-NII-PRIOR> 23077627
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 137241125
<GROSS-ADVISORY-FEES> 6879
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 42955156
<AVERAGE-NET-ASSETS> 1539563
<PER-SHARE-NAV-BEGIN> 4.58
<PER-SHARE-NII> .41
<PER-SHARE-GAIN-APPREC> (.59)
<PER-SHARE-DIVIDEND> .43
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 3.97
<EXPENSE-RATIO> .83
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
<TABLE>
<CAPTION>
SHAREHOLDER RESPONSE SUMMARY REPORT
IDS FUNDS
IDS Extra Income Fund, Inc.
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
1. Election of Board members.
H. Brewster Atwater, Jr.
<S> <C> <C> <C>
Affirmative 545,078,021.356 56.248% 98.641%
Withhold 7,511,293.411 0.775% 1.359%
TOTAL 552,589,314.767 57.023% 100.000%
Arne H. Carlson
Affirmative 543,723,357.797 56.108% 98.396%
Withhold 8,865,956.970 0.915% 1.604%
TOTAL 552,589,314.767 57.023% 100.000%
Lynne V. Cheney
Affirmative 545,050,841.953 56.245% 98.636%
Withhold 7,538,472.814 0.778% 1.364%
TOTAL 552,589,314.767 57.023% 100.000%
William H. Dudley
Affirmative 545,152,889.965 56.255% 98.654%
Withhold 7,436,424.802 0.768% 1.346%
TOTAL 552,589,314.767 57.023% 100.000%
David R. Hubers
Affirmative 545,162,207.976 56.256% 98.656%
Withhold 7,427,106.791 0.767% 1.344%
TOTAL 552,589,314.767 57.023% 100.000%
Heinz F. Hutter
Affirmative 544,977,715.201 56.237% 98.623%
Withhold 7,611,599.566 0.786% 1.377%
TOTAL 552,589,314.767 57.023% 100.000%
Anne P. Jones
Affirmative 545,004,272.711 56.240% 98.627%
Withhold 7,585,042.056 0.783% 1.373%
TOTAL 552,589,314.767 57.023% 100.000%
William R. Pearce
Affirmative 544,777,257.424 56.217% 98.586%
Withhold 7,812,057.343 0.806% 1.414%
TOTAL 552,589,314.767 57.023% 100.000%
Alan K. Simpson
Affirmative 544,626,968.981 56.201% 98.559%
Withhold 7,962,345.786 0.822% 1.441%
TOTAL 552,589,314.767 57.023% 100.000%
John R. Thomas
Affirmative 545,223,606.689 56.263% 98.667%
Withhold 7,365,708.078 0.760% 1.333%
TOTAL 552,589,314.767 57.023% 100.000%
SHAREHOLDER RESPONSE SUMMARY REPORT
IDS FUNDS
IDS Extra Income Fund, Inc.
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
C. Angus Wurtele
Affirmative 544,953,236.415 56.235% 98.618%
Withhold 7,636,078.352 0.788% 1.382%
TOTAL 552,589,314.767 57.023% 100.000%
2. Ratify the selection of independent auditors
Affirmative 541,141,258.567 55.841% 97.928%
Against 4,781,684.549 0.494% 0.866%
Abstain 6,666,371.651 0.688% 1.206%
TOTAL 552,589,314.767 57.023% 100.000%
3. Change the Fund name from "IDS" to "AXP"
Affirmative 507,436,825.372 52.363% 91.829%
Against 36,490,592.685 3.766% 6.603%
Abstain 8,661,896.710 0.894% 1.568%
TOTAL 552,589,314.767 57.023% 100.000%
6. Changes to investment policies
6.2 Senior Securities
Affirmative 492,149,908.184 50.786% 93.242%
Against 19,945,573.056 2.058% 3.779%
Abstain 15,724,591.527 1.623% 2.979%
TOTAL 527,820,072.767 54.467% 100.000%
Not Voting 24,769,242.000
FUND TOTALS Shares
Record Total 969,068,495.973
Voted Shares 552,589,314.767
Percent Voted 57.023%
SHAREHOLDER RESPONSE SUMMARY REPORT
IDS FUNDS
IDS Extra Income Fund, Inc. Class B
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
4. Approve a new shareholder service and distribution plan.
Affirmative 123,715,537.098 46.950% 90.449%
Against 9,647,306.490 3.661% 7.054%
Abstain 3,415,741.310 1.296% 2.497%
TOTAL 136,778,584.898 51.907% 100.000%
Not Voting 1,963.000
FUND TOTALS Shares
Record Total 263,504,899.359
Voted Shares 136,780,547.898
Percent Voted 51.908%
SHAREHOLDER RESPONSE SUMMARY REPORT
IDS FUNDS
IDS Extra Income Fund, Inc. Class A & B
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
4. Approve a new shareholder service and distribution plan.
Affirmative 474,953,606.267 49.027% 90.022%
Against 38,023,795.452 3.925% 7.207%
Abstain 14,620,746.747 1.509% 2.771%
TOTAL 527,598,148.466 54.461% 100.000%
Not Voting 24,768,271.000
FUND TOTALS Shares
Record Total 968,754,528.766
Voted Shares 552,366,419.466
Percent Voted 57.018%
</TABLE>
Independent Auditors' Report
on Internal Accounting Control
The Board of Directors and Shareholders
AXP Extra Income Fund, Inc.:
In planning and performing our audit of the financial statements of
AXP Extra Income Fund, Inc. for the year ended May 31, 1999, we
considered its internal control, including control activities for
safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the
financial statements and to comply with the requirements
of Form N-SAR, not to provide assurance on the internal control.
The management of AXP Extra Income Fund, Inc. is responsible for
establishing and maintaining internal control. In fulfilling
this responsibility, estimates and judgments by management
are required to assess the expected benefits and related costs
of controls. Generally, controls that are relevant to an audit
pertain to the entity's objective of preparing financial
statements for external purposes that are fairly presented
in conformity with generally accepted accounting
principles. Those controls include the safeguarding of
assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or
irregularities may occur and not be detected. Also,
projection of any evaluation of internal control to future
periods is subject to the risk that it may become inadequate
because of changes in conditions or that the effectiveness
of the design and operation may deteriorate.
Our consideration of the internal control would not necessarily
disclose all matters in the internal control that might be
material weaknesses under standards established by the
American Institute of Certified Public Accountants.
A material weakness is a condition in which the
design or operation of one or more of the internal
control components does not reduce to a relatively low
level the risk that errors or irregularities in amounts
that would be material in relation to the financial
statements being audited may occur and not be detected
within a timely period by employees in the normal course
of performing their assigned functions. However, we
noted no matters involving the internal control and
its operation, including controls for safeguarding
securities, that we consider to be a material weakness
as defined above.
This report is intended solely for the information and use
of management, the Board of Directors of AXP Extra Income Fund, Inc.,
and the Securities and Exchange Commission and is not intended to be
and should not be used by anyone other than these specified parties.
KPMG LLP
Minneapolis, Minnesota
July 2, 1999
