On January 1, 2019, Fletcher bought a 20-year, 10% debt instrument with a stated redemption price of $300,000 at original issue for $258,000. The yield-to-maturity is 12%, compounded semiannually and provides for qualified stated interest payments of $15,000 on June 30 and December 31 of each year, the 6-month accrual periods.

What is the OID that Fletcher must include in his taxable income for the first accrual period?

	a.	$10,480
	b.	$480
	c.	$3,000
	d.	$15,480