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24. X Corp. issues a bond on July 1, 2005 with a maturity date of July 1, 2019. The bond has a 5% coupon


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24. X Corp. issues a bond on July 1, 2005 with a maturity date of July 1, 2019. The bond has a 5% coupon and was issued for par. Its stated redemption price and issue price was $10,000 per bond. On July 1, 2017, T buys bonds with a stated redemption amount of $10,000 for $9,400. Each semi-annual coupon on X's bond is $250. Assume T is a calendar year and an accrual basis taxpayer. T holds the bond until maturity. a) How much taxable income will T earn on the bond in 2017? b) How much taxable income will T earn on the bond in 2019?

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