Benny purchased $400,000 of Peach Corporation face value bonds for $320,000 on November 13, 2015. The bonds

Question:

Benny purchased $400,000 of Peach bonds for $320,000 on November 13, 2015. The bonds had been issued with $80,000 of original issue discount because Peach was in financial difficulty in 2015. On December 3, 2016, Benny sold the bonds for $283,000 after amortizing $1,000 of the original issue discount. What are the nature and amount of Benny's gain or loss?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...