Richie owns corporate bonds with detachable interest coupons. Interest of $1,000 is payable each January...
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Richie owns corporate bonds with detachable interest coupons. Interest of $1,000 is payable each January 1 and July 1. On December 31 of Year 1, Richie gave his son the coupons for the interest payments due on January 1 and July 1 of Year 2. When the interest is received by his son in Year 2, how is it taxed? A) $1,000 to Richie and $1,000 to his son B) $2,000 to his son C) $2,000 to Richie D) None, since $2,000 was taxed to Richie in Year 1. (Points : 5) A B C D
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