Rica purchased for $4,500 a $5,000 bond when it was issued two years ago. Rica amortized $250 of the original issue discount and then sold the bond for $4,875. Which of the following statements is correct?
a. Rica has $125 of long-term capital gain.
b. Rica has $250 of long-term capital gain.
c. Rica has $375 of long-term capital gain.
d. Rica has $125 long-term capital loss.
e. None of the above.© BrainMass Inc. brainmass.com June 3, 2020, 7:27 pm ad1c9bdddf
A capital gain is the difference between what you ...
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