Benny purchased $400,000 of Peach Corporation face value bonds for $320,000 on November 13, 2021. The bonds
Question:
Benny purchased $400,000 of Peach Corporation face value bonds for $320,000 on November 13, 2021. The bonds had been issued with $80,000 of original issue discount because Peach was in financial difficulty in 2021. On December 3, 2022, 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?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Because the Peach Corporation bonds were original issue discount bonds the discount ...View the full answer
Answered By
Jehal Shah
I believe everyone should try to be strong at logic and have good reading habit. Because If you possess these two skills, no matter what difficult situation is, you will definitely find a perfect solution out of it. While logical ability gives you to understand complex problems and concepts quite easily, reading habit gives you an open mind and holistic approach to see much bigger picture.
So guys, I always try to explain any concept keeping these two points in my mind. So that you will never forget any more importantly get bored.
Last but not the least, I am finance enthusiast. Big fan of Warren buffet for long term focus investing approach. On the same side derivatives is the segment I possess expertise.
If you have any finacne related doubt, do reach me out.
1+ Reviews
10+ Question Solved
Related Book For 
South Western Federal Taxation 2023 Comprehensive Volume
ISBN: 9780357719688
46th Edition
Authors: Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young
Question Posted:
