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Indicate the taxable amount of interest under each of the below scenarios: A. Taxpayer received $1,500 in interest payments related to a corporate bond purchased

Indicate the taxable amount of interest under each of the below scenarios:

A. Taxpayer received $1,500 in interest payments related to a corporate bond purchased at a discount on the secondary market. The discount amortization for the year is $300.

B. Taxpayer received $2,500 in interest payments related to a corporate bond purchased at a premium. The premium amortization for the year is $400.

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