8. Bay Company acquires 60, 8%, 5 year, $1,000 Community bonds on January 1, 2020 for $60,000. If Bay sells all of its Community bonds for $64,500, what gain or loss is recognized? a. Loss of $9,300 b. Loss of $4,500 C. Gain of $9,300 d. Gain of $4,500 9. If a short-term debt investment is sold, the Investment account is a. debited for the fair value of the bonds at the sale date. b. credited for the cost of the bonds at the sale date. C. credited for the fair value of the bonds at the sale date. d. debited for the cost of the bonds at the sale date. 10. Ban Co. purchased 50, $1,000, 5%, Waylan Company bonds on January 1, 2019 for $50,500 cash. Interest is payable annually on January 1. The entry to record the December 31, 2019, interest accrual would include a a. debit to Interest Receivable for $2,500. b. debit to Interest Revenue for $2,500. C. credit to Interest Revenue for $2,525. d. debit to Debt Investments for $2,525. Blaine Company had these transactions pertaining to stock investments: Feb. 1 Purchased 2,000 shares of Horton Company (10%) for $51,000 cash. June 1 Received cash dividends of $3 per share on Horton stock. Oct. 1 Sold 1,200 shares of Horton stock for $32,400. The entry to record the receipt of the dividends on June 1 would include a 11. a. debit to Stock Investments for $6,000. b. credit to Dividend Revenue for $6,000. C. debit to Dividend Revenue for $6,000. d. credit to Stock Investments for $6,000. 12. Mize Company owns 30% interest in the stock of Lyte Corporation. During the year, Lyle pays $20,000 in dividends to Mize, and reports $300,000 in net income. Mize Company's investment in Lyte will increase Mize's net income by