The Original Issue Discount (OID)rules Apply to All Debt Instruments

question 13

Multiple Choice

The original issue discount (OID) rules apply to all debt instruments with OID,except:

• A)Non-business loans of $10,000 or less between natural persons.
• B)Tax-exempt debt.
• C)U.S.savings bonds.
• D)All of these.

---

Definitions:

Trust Property

Refers to assets held in a trust, managed by a trustee on behalf of the beneficiaries of the trust according to the terms of the trust agreement.

Resulting Trust

A trust that is implied by law to effectuate the presumed intention of the parties involved, often arising when a property transfer does not fit the characteristics of an express trust.

Settlor's Intent

The purpose or intention expressed by a settlor when creating a trust, directing how the trust assets should be managed and distributed.

Unjust Enrichment

A legal principle where one person benefits at another's expense without legal justification, prompting a remedy to correct the imbalance.