Leoni purchased $900,000 of Wingard Corporation face value bonds for $835,000 on May 9, 2015. The bonds
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Leoni purchased $900,000 of Wingard Corporation face value bonds for $835,000 on May 9, 2015. The bonds had been issued with $65,000 of original issue discount (OID), because Wingard was in financial difficulty in 2015. On April 5, 2016, Leoni sold the bonds for $874,000 after amortizing $6, 500 of the original issue discount.
What are the nature and amount of Leoni's gain or loss?
Related Book For
South-Western Federal Taxation 2022 Individual Income Taxes
ISBN: 9780357519073
45th Edition
Authors: James C. Young, Annette Nellen, William A. Raabe, Mark Persellin, William H. Hoffman
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