Question $5$

On January $1,2023,$ Effie Limited $($Effie$)$ purchased $10\%6-$year bonds, dated January $1,2023,$ having a maturity value of $$680,000$ for $$624,085.$

The bonds offer the holders a $12\%$ yield. Effie will receive interest on December $31$ of each year. The fair value of the bonds was $$632,000$ on

December $31,2023.$ On March $31,2024,$ Effie sold the bonds for $$657,700.$

Assuming that Effie used FVOCI to account for its investment in bonds, determine the gain on the sales of the bonds included in net income for the

year ended on December $31,2024.$

a$.$ Between $6,770$ and $6,790$

b$.$ Between $7,790$ and $7,810$

c$.$ Between $8,690$ and $8,710$

d$.$ Between $23,770$ and $23,790$

e$.$ None of the a$,$ b$,$ c and $d$ are correct answers