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ABC, Inc issued 10 year bonds on January 1 2010. The bonds pay annual interest of 2%. Josie purchased a $100.000 face ABC bond on

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ABC, Inc issued 10 year bonds on January 1 2010. The bonds pay annual interest of 2%. Josie purchased a $100.000 face ABC bond on the open market on January 1, 2016 for $ 80,000. (The bonds sold at a discount because interest rates had increased. ) in 2019. Josie received $2,000 cash interest and $100,000 redemption proceeds on December 31, 2019. With respect to these bonds what amounts of gross income will be reported on Josie's 2019 tax return? Multiple Choice o $102,000 ordinary income $2,000 ordinary income and $100.000 non taxable return of capital o $2,000 ordinary income and $20,000 long term capital gain $22.000 ordinary income

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