Sunland Company purchased $3300000 of 7%,5-year bonds from Oriole, Inc. on January 1,2025 with interest...
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Sunland Company purchased $3300000 of 7%,5-year bonds from Oriole, Inc. on January 1,2025 with interest payable on July 1 and January 1. The bonds sold for $3437214 at an effective interest rate of 6%. Using the effective-interest method, Sunland decreased the Available-for-Sale Debt Securities account for the Oriole bonds on July 1, 2025 and December 31,2025 by the amortized premiums of $11220 and $11580, respectively. At April 1, 2026, Sunland sold the Oriole bonds for $3390000. After aceruing for interest, the carrying value of the Oriole bonds on April 1, 2026 was $3397440. Assuming Sunland has a portfolio of Available-for-Sale Debt Securities, what should Sunland report as a gain or loss on the bonds? $(50226) $(7440) 50 $(89207) Attempts: 0 of 1 used
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