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Business, 31.05.2021 01:20 Miamonroe2004

A bank trust company buys $100,000 face amount 20 year G. O. bonds in the secondary market with a remaining life of 10 years at 90. For book purposes, the bank accretes the bonds on a straight line basis. For tax purposes, the bonds are valued at cost. If the bonds are sold after 4 years at 96, the tax consequences are:

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A bank trust company buys $100,000 face amount 20 year G. O. bonds in the secondary market with a re...
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