Lana Purchased for $1,410 a $2,000 Bond When It Was

question 110

Multiple Choice

Lana purchased for $1,410 a $2,000 bond when it was issued two years ago. Lana amortized $200 of the original issue discount and then sold the bond for $1,800. Which of the following statements is correct?

• A) Lana has $10 of long-term capital loss.
• B) Lana has $190 of long-term capital gain.
• C) Lana has no capital gain or loss.
• D) Lana has $190 of long-term capital loss.
• E) None of the above.