This assignment has been solved
On February 1, 2016, Crane purchased $450,000, 6% bonds, with
interest payable on January 1 and July 1, for $359,442, NOT
INCLUDING accrued interest. The bonds mature on March 1, 2023.
Amortization is recorded using the straight-line method and the
bonds are classified as trading. On December 31, 2020, the bonds
were adjusted to their proper carrying value when their fair value
was $382,522. The fair market value of the bonds on December 31,
2019 was $358,457.
Assuming the bonds were sold on October 1, 2021 for $392,062, PLUS
accrued interest, determine the gain or loss on the sale of the
bonds? Note: Accrue interest and amortize premium/discount on a
monthly basis. Round your answer to the nearest whole dollar. If a
gain results, enter your answer as a positive number. If a loss
results, place a minus sign ‘-‘ prior to the amount of the