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Brums [2.3K]
3 years ago
11

Theresa, a cash basis taxpayer, purchased a bond on July 1, 2013, for $10,000, plus $400 of accrued interest. The bond paid $800

of interest each December 31. On March 31, 2017, she sold the bond for $9,800, which included $200 of accrued interest.a. Theresa has $200 interest income and a $400 loss from the bond in 2017.b. Theresa has $200 interest income and a $200 gain from the bond in 2017.c. Theresa has a $100 loss from the sale of the bond and no interest income.d. Theresa's loss on the sale of the bond is $600.e. None of these.
Business
1 answer:
Radda [10]3 years ago
3 0

Answer:

a. Theresa has $200 interest income and a $400 loss from the bond in 2017

Explanation:

Since the bond was sold for $9,800 which includes the $200 accrued interest that means it reflects the interest income of $200

And, if we exclude the interest income from the sale value of bond, then the value is $9,600 and its purchase price without considering the accrued interest is $10,000. So, after comparing the purchase price and the sale price the loss of $400 would be determined

$9,600 - $10,000 = $(400)

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Reduction of cost basis per share.

When you take a look at some of the rules that IRS has, you see that stock dividends do not get taxsd at the time of receipt. They don't get taxed because, the shareholder does not receive anything from the company, only but a hope on any increased future share price increment or appreciation.

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3 years ago
Difference between per<br> behaviour and organisational behaviour
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Answer:

Organiational behaviour looks at the individual behaviour, then moves to group behaviour, progressively to the organization behaviour, which you can also call the organization culture. It requires skills to understand how the organization and its members affect each other. Areas include frameworks for diagnosing and resolving problems in organizational settings. Human behaviour, call it individual behaviour is a sub-set of organization behaviour.

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I got A too hope this helps
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3 years ago
Read 2 more answers
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