Blossom Company purchased $2350000 of 7 %, 5-year bonds from Nash, Inc. on January 1, 2025 with interest payable on July 1 and January 1. The bonds sold for $2447713 at an effective interest rate of 6%. Using the effective-Interest method, Blossom decreased the Available-for-Sale Debt Securities account for the Nash bonds on July 1, 2025 and December 31, 2025 by the amortized premiums of $9320 and $9680, respectively. At April 1, 2026, Blossom sold the Nash bonds for $2440000. After accruing for interest, the carrying value of the Nash bonds on April 1, 2026 was $2447440. Assuming Blossom has a portfolio of Available-for-Sale Debt Securities, what should Blossom report as a gain or loss on the bonds? O $(89727) ○ $0 O $(7440) O $(91577)

Blossom Company purchased $2350000 of 7 %, 5-year bonds from Nash, Inc. on January 1, 2025 with interest payable on July 1 and January 1. The bonds sold for $2447713 at an effective interest rate of 6%. Using the effective-Interest method, Blossom decreased the Available-for-Sale Debt Securities account for the Nash bonds on July 1, 2025 and December 31, 2025 by the amortized premiums of $9320 and $9680, respectively. At April 1, 2026, Blossom sold the Nash bonds for $2440000. After accruing for interest, the carrying value of the Nash bonds on April 1, 2026 was $2447440. Assuming Blossom has a portfolio of Available-for-Sale Debt Securities, what should Blossom report as a gain or loss on the bonds? O $(89727) ○ $0 O $(7440) O $(91577)

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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