Lea Purchased for $1,310 a $2,000 Bond When It Was

question 94

Multiple Choice

Lea purchased for $1,310 a $2,000 bond when it was issued three years ago.Lea amortized $200 of the original issue discount and then sold the bond for $1,800.Which of the following statements is correct?

• A) Lea has $290 of long-term capital gain.
• B) Lea has $490 of long-term capital gain.
• C) Lea has no capital gain or loss.
• D) Lea has $490 of long-term capital loss.
• E) None of the above.

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Revenue

The comprehensive total of money a firm collects from offering goods or services in a pre-determined period.

Total Revenue

The total amount of money a company receives from its business activities, calculated by multiplying the price of goods or services by the number of units sold.

Baseball Stadium

A specialized venue designed primarily for hosting baseball games.

Ticket Sales

The process of selling admission tickets to events such as concerts, movies, or sporting events.