Which of the following choices concerning the recognition of interest income for corporate bond are correct? (check all that apply.)
a. if bonds were issued at a premium, taxpayers must amortize the premium over the life of the bond resulting in an increase in interest income.
b. if bonds were issued at a discount, special original issue discount rules apply.
c. if bonds are purchased at a premium in the secondary market, the premium can be amortized or added to the basis of the bond.
d. if bonds are purchased at a discount in the secondary market, the discount is amortized over the remaining life of the bond.
e. the actual interest payments received are included in gross income.
Answers: 2
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Which of the following choices concerning the recognition of interest income for corporate bond are...
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