Which of the Following Debt Instruments Are Not Excluded from Original

question 14

Multiple Choice

Which of the following debt instruments are not excluded from original issue discount (OID) rules?

• A)U.S.Savings Bonds
• B)Issues not in security (bond) form
• C)Bonds with maturity dates no more than one year after their dates of issue (unless held by accrual basis taxpayers)
• D)Nonbusiness loans between individuals of $10,000 or less

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Definitions:

Consolidated Income Tax Return

A combined tax return for a parent company and its subsidiaries, allowing the group to be taxed as a single entity.

Intra-entity Transfers

Transactions involving assets, services, or funds between divisions, departments, or units within the same organization.

Voting Stock

Shares of stock that grant the shareholder the right to vote on corporate matters.

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production.