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CONCEPTS IN FED.TAX.,2020-W/ACCESS

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter16: Tax Research

Section: Chapter Questions

Problem 49RC

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Question

A government acquires as an investment a 30-year U.S. Treasury bond having a
face value of $10,000. At the end of year 20, with 10 years remaining until
maturity, the bond had a fair value of $10,200. Taking into account the
discount at which the government initially purchased the bond, its amortized
cost was $9,760. Assuming that it held the bond in a governmental fund, the
government should report the bond at a value of
$0.
$9.760.
$10.000
$10.200.

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