Question: During 2 0 0 2 , Plano Co . purchased 5 0 0 , $ 1 , 0 0 0 , 9 % bonds. The

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.
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