On January 1, 2020, Ochre Inc. acquires 75 Peak Inc. 7%, 10-year, $1,000 bonds. As part...

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On January 1, 2020, Ochre Inc. acquires 75 Peak Inc. 7%, 10-year, $1,000 bonds. As part of the purchase, Ochre pays its broker a $3,700 service fee on top of the cost of the bonds. On the same day, Emerald Inc. acquires 70 Pinnacle Inc. 8 %, 10-year, $1,000 bonds for $70,000 plus a 5% broker's commission. Later, on January 1, 2021, Ochre sells 30 of its bonds for $34,500, and Emerald sells 35 of for than Emerald will. its bonds for $38,000. When journalizing the sale of these bonds, Ochre will credit Gain on Sale of Debt Investments; $1,770 more credit Cash; $5,270 less debit Gain on 'Sale of Debt Investments; $1,770 more Odebit Cash: $5,270 less On January 1, 2020, Ochre Inc. acquires 75 Peak Inc. 7%, 10-year, $1,000 bonds. As part of the purchase, Ochre pays its broker a $3,700 service fee on top of the cost of the bonds. On the same day, Emerald Inc. acquires 70 Pinnacle Inc. 8 %, 10-year, $1,000 bonds for $70,000 plus a 5% broker's commission. Later, on January 1, 2021, Ochre sells 30 of its bonds for $34,500, and Emerald sells 35 of for than Emerald will. its bonds for $38,000. When journalizing the sale of these bonds, Ochre will credit Gain on Sale of Debt Investments; $1,770 more credit Cash; $5,270 less debit Gain on 'Sale of Debt Investments; $1,770 more Odebit Cash: $5,270 less

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Answer Answer is Option a Explanation is as follow Since ... View the full answer