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11. On January 1, 2020, Monsters Inc. buys some bonds of another company, then sells them on January 1, 2021. Monsters Inc. classified the debt
11. On January 1, 2020, Monsters Inc. buys some bonds of another company, then sells them on January 1, 2021. Monsters Inc. classified the debt investment as available-for-sale and reports the following information about the bond:
Item | Amount |
---|---|
Face value | $480,000 |
Purchase price | $446,000 |
Amortization for 2020 | $4,000 |
Fair value on December 31, 2020 | $473,000 |
Sale price on January 1, 2021 | $474,000 |
How much Gain/Loss on Sale of Investments should Monsters Inc. report for the sale on January 1, 2021? (a positive number is a gain and a negative number is a loss)
$1,000
$24,000
($6,000)
$28,000
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