In 2015, Mrs. Ulm paid $80,000 for a corporate bond with a $100,000 stated redemption value. Based

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In 2015, Mrs. Ulm paid $80,000 for a corporate bond with a $100,000 stated redemption value. Based on the bond's yield to maturity, amortization of the $20,000 discount was $1,512 in 2015, $1,480 in 2016, and $295 in 2017. Mrs. Ulm sold the bond for $84,180 in March 2017. What are her tax consequences in each year assuming that:
a. She bought the newly issued bond from the corporation?
b. She bought the bond in the public market through her broker?
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Principles Of Taxation For Business And Investment Planning 2018

ISBN: 9781259713729

21st Edition

Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan

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