During 2023, Monty Inc. purchased 2400, $1000, 9% bonds. The bonds mature on March 1, 2028 and pay interest on March 1 and September 1. The carrying value of the bonds at December 31, 2023 was $1967250. On September 1, 2024, after the semi-annual interest was received, Brandon sold half of these bonds for $1021600. Monty uses straight-line amortization and has accounted for the bonds under the amortized cost model. The gain on the sale is $72595. $0. $3355.
During 2023, Monty Inc. purchased 2400, $1000, 9% bonds. The bonds mature on March 1, 2028 and pay interest on March 1 and September 1. The carrying value of the bonds at December 31, 2023 was $1967250. On September 1, 2024, after the semi-annual interest was received, Brandon sold half of these bonds for $1021600. Monty uses straight-line amortization and has accounted for the bonds under the amortized cost model. The gain on the sale is $72595. $0. $3355.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions
Section: Chapter Questions
Problem 19P
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Transcribed Image Text:During 2023, Monty Inc. purchased 2400, $1000, 9% bonds. The bonds mature on March 1,
2028 and pay interest on March 1 and September 1. The carrying value of the bonds at
December 31, 2023 was $1967250. On September 1, 2024, after the semi-annual interest was
received, Brandon sold half of these bonds for $1021600. Monty uses straight-line amortization
and has accounted for the bonds under the amortized cost model. The gain on the sale is
$72595.
$0.
$3355.
$37975.
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