Question: Benny purchased 400 000 of Peach Corporation face value bonds for

Benny purchased $400,000 of Peach Corporation face value bonds for $320,000 on November 13, 2013. The bonds had been issued with $80,000 of original issue discount because Peach was in financial difficulty in 2013. On December 3, 2014, Benny sold the bonds for $283,000 after amortizing $1,000 of the original issue discount.
What are the nature and amount of Benny's gain or loss?


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  • CreatedMay 25, 2015
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