During 2023, Monty Inc. purchased 2400, $1000, 9% bonds. The bonds mature on March 1, 2028 and pay interest on March 1 and September 1. The carrying value of the bonds at December 31, 2023 was $1967250. On September 1, 2024, after the semi-annual interest was received, Brandon sold half of these bonds for $1021600. Monty uses straight-line amortization and has accounted for the bonds under the amortized cost model. The gain on the sale is $72595. $0. $3355.

During 2023, Monty Inc. purchased 2400, $1000, 9% bonds. The bonds mature on March 1, 2028 and pay interest on March 1 and September 1. The carrying value of the bonds at December 31, 2023 was $1967250. On September 1, 2024, after the semi-annual interest was received, Brandon sold half of these bonds for $1021600. Monty uses straight-line amortization and has accounted for the bonds under the amortized cost model. The gain on the sale is $72595. $0. $3355.

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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