Mr. Jolly received the $100,000 face amount on the redemption of a matured corporate bond. How much

Question:

Mr. Jolly received the $100,000 face amount on the redemption of a matured corporate bond. How much interest income does he recognize on redemption if:

a. He purchased the bond from a broker for $93,100?

b. He purchased the bond from the corporate issuer at its $72,900 original discount price?

Assume the taxable year is 2018.

Broker
A broker is someone or something that acts as an intermediary third party, managing transactions between two other entities. A broker is a person or company authorized to buy and sell stocks or other investments. They are the ones responsible for...

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