Rob market discount on the bonds


On January 1, 2010, Rob pays $92,550 for corporate bonds that have a $100,000 face value. The bonds were originally issued 10 years earlier for $94,660. Prior to January 1, 2010, the previous owner had included $3,100 of original issue discount (OID) in gross income. The amount of Rob's market discount on the bonds is:

a. $2,110.

b. $7,450.

c. $5,340

d. $5,210.

e. $4,350.

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Accounting Basics: Rob market discount on the bonds
Reference No:- TGS060763

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