Question
On July 1, 2014 Individual A acquires in the open market a bond of Corporation X having stated redemption price of $10,000 and maturity date
On July 1, 2014 Individual A acquires in the open market a bond of Corporation X having stated redemption price of $10,000 and maturity date of December 31, 2016 for $9,000. On December 31, 2015, when the bond has accrued market discount of $600, A sell the bond for $8,500. How much interest income does A recognize in 2015?
A. $0
B. $600
C. $1,000
D. $500
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Financial Accounting An Integrated Approach
Authors: Michael Gibbins
6th Edition
0176407251, 978-0176407254
