Horatio owns Utah general purpose bonds with a face value of $50,000 that he purchased last year

Question:

Horatio owns Utah general purpose bonds with a of $50,000 that he purchased last year for $52,000. During the current year, Horatio receives $2,400 in interest on the bonds. In December, Horatio sells the bonds for $48,000. What is the effect of the bond transactions on Horatio's gross income for the current year?

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...