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A taxpayer purchased a bond denominated in GBP for EUR112,000 when 1 EUR = $0.75. Taxpayer sells the bond for EUR125,000 when the exchange rate
A taxpayer purchased a bond denominated in GBP for EUR112,000 when 1 EUR = $0.75. Taxpayer sells the bond for EUR125,000 when the exchange rate has increased to $0.78.
What is the amount and character of taxpayer's gain/loss?
a. | $3,360 capital gain & $10,140 ordinary income | |
b. | $3,360 ordinary income & $10,140 capital gain | |
c. | $3,360 ordinary income | |
d. | $3,360 ordinary income and $13,500 capital gain |
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