Cullumber Company purchased $2450000 of 8%, 5-year bonds from Ritter, Inc. on January 1, 2018,...
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Cullumber Company purchased $2450000 of 8%, 5-year bonds from Ritter, Inc. on January 1, 2018, with interest payable on July 1 and January 1. The bonds sold for $2574740 at an effective interest rate of 7%. Using the effective-interest method, Cullumber Company decreased the Available-for-Sale Debt Securities account for the Ritter, Inc. bonds on July 1, 2018 and December 31, 2018 by the amortized premiums of $9520 and $9880, respectively. At December 31, 2018, the fair value of the Ritter, Inc. bonds was $2630000.
What should Cullumber Company report as other comprehensive income and as a separate component of stockholders' equity?
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