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:

Ether Linkages

Chemical bonds in which an oxygen atom connects two alkyl or aryl groups, commonly found in organic compounds and lipids like phospholipids.

Branched-Chain Hydrocarbons

Organic molecules consisting of carbon and hydrogen atoms arranged in a branched structure.

Ester Linkages

Chemical bonds formed between an acid and an alcohol with the elimination of water, commonly found in fats and biological molecules like DNA.

Peptidoglycans

A polymer consisting of sugars and amino acids that forms a mesh-like layer outside the plasma membrane of most bacteria, providing structural support and shape.