On February 1, 2016, Crane purchased $450,000, 6% bonds, with interest payable on January 1 and July 1, for $359,442, NOT INCLUDING accrued interest. The bonds mature on March 1, 2023. Amortization is recorded using the straight-line method and the bonds are classified as trading. On December 31, 2020, the bonds were adjusted to their proper carrying value when their fair value was $382,522. The fair market value of the bonds on December 31, 2019 was $358,457.
Assuming the bonds were sold on October 1, 2021 for $392,062, PLUS accrued interest, determine the gain or loss on the sale of the bonds? Note: Accrue interest and amortize premium/discount on a monthly basis. Round your answer to the nearest whole dollar. If a gain results, enter your answer as a positive number. If a loss results, place a minus sign '-' prior to the amount of the loss.

Answer rating: 100% (QA)

Crane purchased 6 bonds of face value 450000 for 359442 excluding interest accrued This gives a disc... View the full answer