During 2002, Plano Co. purchased 500, $1,000, 9% bonds. The carrying value of the bonds at December 31, 2004 was $490,000. The bonds mature on March 1, 2009, and pay interest on March 1 and September 1. Plano sells 250 bonds on September 1, 2005, for $247,000, after the interest has been received. Plano uses straight-line amortization. Calculate the gain on the sale. 

Answer rating: 100% (QA)

Carrying value on 31 Dec 2004 490000 Carrying value on 1 ... View the full answer