Karen owns City of Richmond bonds with a face value of $10,000. She purchased the bonds on January 1, 2017, for $11,000. The maturity date is December 31, 2026. The annual interest rate is 4%. What is the amount of taxable interest income that Karen should report for 2017, and the adjusted basis for the bonds at the end of 2017, assuming straight-line amortization is appropriate?
A)$0 and $11,000
B)$0 and $10,900
C)$100 and $11,000
D)$100 and $10,900
E)None of the above

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The Answer of Karen owns City of Richmond bonds with a face value of $10,000. She purchased the bonds on January 1, 2017, for $11,000. The maturity date is December 31, 2026. The annual interest rate is 4%. What is the amount of taxable interest income that Karen should report for 2017, and the adjusted basis for the bonds at the end of 2017, assuming straight-line amortization is appropriate?
A)$0 and $11,000
B)$0 and $10,900
C)$100 and $11,000
D)$100 and $10,900
E)None of the above

Karen Owns City of Richmond Bonds with a Face Value