During 2017, Brandon Inc purchased 2,000, $1,000, 9% bonds. The bonds mature on March 1, 2019, and
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During 2017, Brandon Inc purchased 2,000, $1,000, 9% bonds. The bonds mature on March 1, 2019, and pay interest on March 1 and September 1 The carrying value of the bonds at December 31, 2017 was $1,960,000. On September 1, 2018, after the semiannual interest was received, Brandon sold half of these bonds for $988,000 Brandon uses straightline amortization and has accounted for the bonds under the amortized cost model. The gain on the sale is:
a) $ 11,200.
b) $ 8,000.
c) $ 4,800.
d) $ 0
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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