Lea purchased for $1,310 a $2,000 bond when it was issued three years ago.Lea amortized $200 of the original issue discount and then sold the bond for $1,800.Which of the following statements is correct?
A) Lea has $290 of long-term capital gain.
B) Lea has $490 of long-term capital gain.
C) Lea has no capital gain or loss.
D) Lea has $490 of long-term capital loss.
E) None of the above.
Correct Answer:
Verified
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