X Corp issues a bond on March 1, 2014 with a maturity date of February 28, 2024. The redemption amount is 100,000 and the bonds were issued to the public. The first price paid for the bond was $55,000 but most of the bonds issued sold for $50,000. The annual yield to maturity on the bond is 10%. The bonds do not have a coupon. Assume that B bought the bond on the date it was issued for $50,000.

a.Does this bond have original issue discount?

b.What is the bonds issue price?

c.If B is an accrual basis taxpayer, how much income does B derive in 2014 with respect to the bond?

d.If B is a cash basis taxpayer, how much income does B derive in 2014 with respect to the bond?

e.In computing original issue discount, does every owner of the bond begin the calculation using the same issue or revised issue price?