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.

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Definitions:

Telegraphic Speech

The use of short, precise words without grammatical markers such as articles, auxiliary verbs, and other connectives.

Overextension

A linguistic phenomenon observed in childhood language development where a child applies a word more broadly than its adult meaning.

Holophrase

A single word used by an infant that expresses a complex idea or request, indicative of early language development.

Telegraphic Speech

A stage in language development in young children where sentences are constructed with only essential words and grammar is often missing.