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Pass JN0-362 Exam Cram

Exam Code: JN0-362

Exam Name: Service Provider Routing and Switching, Specialist (JNCIS-SP)

Version: V15.35

Q & A: 208 Questions and Answers

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NEW QUESTION: 1
Bubba buys a ten-year municipal and at 102 and sells it five years later at 101.
What is tax treatment?
A. a $10 long-term capital loss is realized
B. the $10 loss is applied against future profits in municipal securities
C. the $10 loss is applied as a reduction against ordinary income
D. no capital loss or income deduction is realized
Answer: D
Explanation:
Explanation/Reference:
Explanation: no capital loss or income deduction is realized. The $20 premium is amortized over the ten- year life of the bond. After five years, half of the premium has been written down. The remaining premium is the same as the premium received upon selling the bond. The sale at 101 results in no loss or gain.

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