Question: 26. X Corp issues a bond on March 1, 2014 with a maturity date of March 1,2024 The issue price and the redemption amount are

26. X Corp issues a bond on March 1, 2014 with

26. X Corp issues a bond on March 1, 2014 with a maturity date of March 1,2024 The issue price and the redemption amount are 100,000. The bonds have a 6% coupon. On March 1, 2019, C purchases the bond with a redemption amount of $10,000 for $9,400. C sells the bond on March 1, 2021. How much capital gain will C recognize if C sells the bonds for: a) $9,420 b) $9,650 27. X Corp issues a bond on October 1, 2009, that matures on October 1,2019, with an issue price and stated redemption amount of $1,000. The bond has a 5% coupon that pays semi-annually, every March 1 and September 1, Y purchases the bond on October 1, 2017 for $1,100. The premium allocable to the period between October 1, 2017 and December 31,2017 is $5. Y will elect to amortize the premium

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