Individual A owns a bond having a principal amount of $1,000 and bearing interest at 10%, payable semiannually on January 1 and July 1 of each year. On September 30, 2023, A sells the bond to individual B for $1,075. Assume that, of the total consideration paid by B, $1,050 represents payment for the bond itself, and $25 represents accrued interest. 1. How will A be taxed? 2. What will be the basis of B in the bond