Brye owns blue Corporation bonds(Face value of $10,000), purchased on Jan 1 2020 for $11,000. The bonds have an annual i

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answerhappygod
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Brye owns blue Corporation bonds(Face value of $10,000), purchased on Jan 1 2020 for $11,000. The bonds have an annual i

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Brye owns blue Corporation bonds(Face value of $10,000),purchased on Jan 1 2020 for $11,000. The bonds have an annualinterest rate of 3% and a maturity date of December 31, 2029. IfBrye elects to amortize the bone premium, what are his taxableinterest income for 2020 and the adjusted basis for the bonds atthe end of 2020 9assuming straight-line amortization isappropriate)?
A= $300 and $11,000
B= $300 and $10,900
C=$200 and $10,900
D=$200 and $11,000
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