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Question 5 On January 1,2023, Effie Limited (Effie) purchased 10%6-year bonds, dated January...

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Accounting

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
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