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?

Benny has $ of Selectlong-term capital lossordinary lossshort-term capital lossItem 2 from the sale of the bonds.

Amount $38000 of long-term capital loss

Explanation:

given data

purchased =  $400,000

face value bonds = $320,000

sold the bonds = $283,000

original issue discount = $1,000

solution

we get here amount of Benny's that is express as

amount of Benny's = face value bonds - sold the bonds + original issue discount  1

put here value

amount of Benny's =$320,000-$283,000 + $1000

amount of Benny's = $38000

so here amount $38000 of long-term capital loss

i believe it’s b because the rest don’t make sense

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.