Absolute Investment Company (AIC) purchased bonds on January 1, 2024. AIC's accountant has projected the following amortization schedule from purchase until maturity Cash Interest Amortization Amortized Date Received Revenue of Discount Cost $253,295 254,293 255,336 256,426 1/1/2024 6/30/2024 $10,400 $11,398 12/31/2024 10,400 11,443 6/30/2025 10,400 11,490 12/31/2025 10,400 11,539 6/30/2026 10,400 11,590 12/31/2026 10,400 11,645 1,139 257,565 1,190 258,755 1,245 260,000 AIC sells the bonds for $255,000 immediately after the interest payment on 12/31/24. What gain or loss, if any, would AIC record on this date? Multiple Choice $336 loss $5,000 gan No gain or loss $5,000 loss $998 1,043 1,090

Absolute Investment Company (AIC) purchased bonds on January 1, 2024. AIC's accountant has projected the following amortization schedule from purchase until maturity Cash Interest Amortization Amortized Date Received Revenue of Discount Cost $253,295 254,293 255,336 256,426 1/1/2024 6/30/2024 $10,400 $11,398 12/31/2024 10,400 11,443 6/30/2025 10,400 11,490 12/31/2025 10,400 11,539 6/30/2026 10,400 11,590 12/31/2026 10,400 11,645 1,139 257,565 1,190 258,755 1,245 260,000 AIC sells the bonds for $255,000 immediately after the interest payment on 12/31/24. What gain or loss, if any, would AIC record on this date? Multiple Choice $336 loss $5,000 gan No gain or loss $5,000 loss $998 1,043 1,090

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Absolute Investment Company (AIC) purchased bonds on January 1, 2024. AIC's accountant has projected the following amortization schedule from purchase until maturity
Cash Interest Amortization Amortized
Received Revenue of Discount
Cost
$253,295
254,293
255,336
256,426
Date
1/1/2024
6/30/2024 $10,400 $11,398
12/31/2024 10,400 11,443
6/30/2025 10,400 11,490
12/31/2025 10,400 11,539
6/30/2026 10,400 11,598
12/31/2026 10,400 11,645
257,565
1,190
258,755
1,245
260,000
AIC sells the bonds for $255,000 immediately after the interest payment on 12/31/24. What gain or loss, if any, would AIC record on this date?
Multiple Choice
$336 loss
$5,000 gan
No gain or loss
$5,000 loss
$998
1,043
1,090
1,139

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