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13-15 Taxable income does not include: Interest payments. Child support payments. Alimony payments. Qualified dividend payments. Joel purchased $125,000 of A and D Corporation's newly

13-15 image text in transcribed
Taxable income does not include: Interest payments. Child support payments. Alimony payments. Qualified dividend payments. Joel purchased $125,000 of A and D Corporation's newly issued bonds for $114, 500. The bonds carry an interest rate of 8% and mature in 5 years. What is the initial OID on these bonds? $10,000. $2,000. $10, 500. $2, 100. An individual with an original issue discount (OID) instrument must report annually a portion of the OID as: Interest income. Miscellaneous income. Capital gains. Qualified dividend income

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