A company acquires a $200,000, 7-year, 5% bond on January 1, 2021. The bonds pay...
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Accounting
A company acquires a $200,000, 7-year, 5% bond on January 1, 2021. The bonds pay interest on January 1 and July 1 each year.
Assume that the company sells its investment on January 1, 2023 for $199,450. The amortized cost of the bonds on January 1, 2023 is $198,540.
On the sale of the bond, there would be a gain on sale of investments or loss on sale of investments of? Record a gain as a positive number, a loss as a negative number. Do not round intermediary answers. Round your final answer to the nearest dollar. Do not use $ signs in your final answer.
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