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At the end of 2025, Blossom Company purchased 6000, $1000, 10% bonds. The carrying value of the bonds at December 31, 2025 was $5925000. The bonds mature on March 1, 2030, and pay interest on March 1 and September 1. Blossom sells 3000 bonds on September 1, 2026, for $2989500, after the interest has been received. Blossom uses straight-line amortization. The gain on the sale is O $21000. O $33000. O $0. O $27000.

At the end of 2025, Blossom Company purchased 6000, $1000, 10% bonds. The carrying value of the bonds at December 31, 2025 was $5925000. The bonds mature on March 1, 2030, and pay interest on March 1 and September 1. Blossom sells 3000 bonds on September 1, 2026, for $2989500, after the interest has been received. Blossom uses straight-line amortization. The gain on the sale is O $21000. O $33000. O $0. O $27000.

FINANCIAL ACCOUNTING
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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At the end of 2025, Blossom Company purchased 6000, $1000, 10% bonds. The carrying value of the bonds at December 31, 2025 was $5925000. The bonds mature on March 1, 2030, and pay interest on March 1 and September 1. Blossom sells 3000 bonds on September 1, 2026, for $2989500, after the interest has been received. Blossom uses straight-line amortization. The gain on the sale is O $21000. O $33000. O $0. O $27000.
Transcribed Image Text:At the end of 2025, Blossom Company purchased 6000, $1000, 10% bonds. The carrying value of the bonds at December 31, 2025 was $5925000. The bonds mature on March 1, 2030, and pay interest on March 1 and September 1. Blossom sells 3000 bonds on September 1, 2026, for $2989500, after the interest has been received. Blossom uses straight-line amortization. The gain on the sale is O $21000. O $33000. O $0. O $27000.
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