INCOME TAX

Question 19 (1 point)

On January 1, 2014, Ron pays $92,550 for corporate bonds that have a $100,000 face value. The bonds were originally issued 10 years earlier for $94,660. Prior to January 1, 2014, the previous owner had included $3,100 of original issue discount (OID) in gross income. The amount of Ron's market discount on the bonds is:

$2,110.

$7,450.

$5,340

$5,210.

$4,350.

Question 20 (1 point)

In computing the taxable amount of social security benefits, the (first-tier) base amount for a married person who files jointly with her spouse is:

$0.

$16,000.

$25,000.

$32,000.

$50,000.