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In 2018, Mrs. Ulm paid $80,000 for a corporate bond with a $100,000 stated redemption value. Based on the bond's yield to maturity, amortization of

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In 2018, Mrs. Ulm paid $80,000 for a corporate bond with a $100,000 stated redemption value. Based on the bond's yield to maturity, amortization of the $20,000 discount was $1,512 in 2018, $1,480 in 2019, and $295 in 2020. Mrs. Ulm sold the bond for $84,180 in March 2020. Assume the taxable year is 2020. Required: a. What are her tax consequences in each year assuming that she bought the newly issued bond from the corporation? b. What are her tax consequences in each year assuming that she bought the bond in the public market through her broker? Complete this question by entering you Required A Required B What are her tax consequences in each year Amount $ 81,512 2018 Ordinary Income 2019 Ordinary Income 2020 Ordinary Income 2020 Long-term capital gain $ 82,992 X $ 82,992 X $ 1,188 X Complete this question by entering your Required A Required B What are her tax consequences in each year a Amount $ 98,520 X 2019 Ordinary Income 2020 Ordinary Income 2018 Ordinary Income 2020 Long-term capital gain $ 1,188 X

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