A $300,000 investment in held-to-maturity bonds was sold at 98 when the carrying value of the investment was $295,000. What would the entry to record the disposal include? a) a loss of $5,000 Ob) a loss of $1,000 Oc) a gain of $1,000 d) a gain of $5,000 Question 2 (1 point) Listen > How are held-for-trading investments in bonds recorded? a) at cost, but they are reported at fair market value b) at cost adjusted for the income of the investee Oc) at cost, but they are reported at amortized cost d) at cost and they are reported at cost During the current year, Yankton Corp. purchased 200 shares of Sorros Inc. for $13,000 as a held-for-trading investemnt. At the end of the year, the market value of the shares was $11,000. What should Yankton Corp's financial statements for the current year show? a) no loss on the incoe statement and held-for-trading investments of $13,000 on the balance sheet b) a loss of $2,000 on the income statement and held-for-trading investments of$11,000 on the balance sheet c) a loss of $2,000 on the income statement and held-for-trading investments of $13,000 on the balance sheet. d) a gain of $2,000 on the income statement and held-for-trading investments of $11,0000 on the balance sheet. Question 4 (1 point) Listen What does the equity method of accounting for investments require? a) the investment be increased by the reported net incone of the investee b) the investment be decreased by the reported net income of the investee c) the investment to be reported at its original cost d) a year-end adjustment to revalue the shares to market The Merchant Corporation purchased 10-year bonds as held-to-maturity investments on January 1, 2015. The 15% bonds have a face value of $100,000 and interest is received every January 1 and July 1. The bonds were purchased for $117,205 based on the market interest rate of 12%. The effective interest method is used to amortize bond discounts and premiums. On July 2, 2015, how much interest should Merchant record (round to nearest dollar)? a) $14,065 Ob) $7.032 c) $8.790 d) $7,500