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In 2019, 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
In 2019, 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 2019, $1,480 in 2020, and $295 in 2021. Mrs. Ulm sold the bond for $84,180 in March 2021. Assume the taxable year is 2021. 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B What are her tax consequences in each year assuming that she bought the bond in the public market through her broker? 2020 Ordinary Income Amount $ 0 2021 Ordinary Income $ 893 2021 Long-term capital gain $ 893 2019 Ordinary Income $ 0 < Required A Required B >
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