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On November 22 of this year, Mel Marcks sells a general obligation bond issued by East City and realizes a loss of $600. On December
On November 22 of this year, Mel Marcks sells a general obligation bond issued by East City and realizes a loss of $600. On December 13 of this year, Mel buys another bond issued by East City, but with a different interest rate and redemption date. Which of the following is true?
A. | Mel may deduct half of the $600 loss on the November 22 sale. | ||
B. | Mel may deduct the $600 loss on the November 22 sale. | ||
C. | Mel must hold the new bond for at least 30 days in order to deduct the $600 loss. | ||
D. | Mel will defer the $600 loss on the November 22 sale. |
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