____ 24. Missy, a cash basis taxpayer, purchased a bond on July 1, 2009, for $10,000, plus $400 of accrued interest. The bond paid $800 of interest each December 31. On March 31, 2014, she sold the bond for $9,800, which included $200 of accrued interest.

a.	Missy has $200 interest income and a $400 loss from the bond in 2013.
b.	Missy has $200 interest income and a $200 gain from the bond in 2013.
c.	Missy has a $100 loss from the sale of the bond and no interest income.
d.	Missys loss on the sale of the bond is $600.
e.	None of the above.

Instructions : Please provide 2-3 sentence brief explanation and choose the best multiple choice answer. All sources must be noted. SHOW ALL WORK.