Benny purchased 400000 of peach corporation face value, Ask an Expert

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Benny purchased $400,000 of Peach Corporation face value bonds for $320,000 on November 13, 2012. The bonds had been issued with $80,000 of original issue discount (OID), because Peach was in financial difficulty in 2012. On December 3, 2013, Benny sold the bonds for $283,000 after amortizing $1,000 of the original issue discount.What are the nature and amount of Benny's gain or loss?

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Accounting Basics, Accounting

Category:- Accounting Basics
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