On its December $31,2022$ balance sheet, Drump Company reported its investment in available for sale debt securities at a fair

value of $$560,000($which had cost $$600,000).$ At December $31,2023,$ the fair value of the securities was $$585,000.$ What should

Drump Co$.$ report in its $2023$ net incomeras a result of the increase in the fair value of the investments in $2023?$ The company does

not use the fair value option.

Select one:

A$.$ Unrealized loss of $$15,000$

B$.$ $$0$

C$.$ Realized gain of $$25,000$

D$.$ Unrealized gain of $$25,000$

On January $1,2024,$ Huber Co$.$ sold $12\%$ bonds with a face value of $$2,000,000.$ The bonds mature in five years, and

interest is paid annually on December $31.$ The bonds were sold for $$2,154,500$ to yield $10\%.$ Using the effective$-$interest

method of amortization, interest expense for $2024$ is

Select one:

A$.$ $$200,000.$

B$.$ $$240,000.$

C$.$ $$214,836.$

D$.$ $$215,450.$