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Boyd Acquired Tax-Exempt Bonds for $430,000 in December 2012

Question 17

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Boyd acquired tax-exempt bonds for $430,000 in December 2012.The bonds, which mature in December 2017, have a maturity value of $400,000.Boyd does not make any elections regarding the amortization of the bond premium.Determine the tax consequences to Boyd when he redeems the bonds in December 2017.

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When Boyd redeems the bonds in 2017, he ...

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