A company invests $700,000 in corporate bonds in 2023 and classifies them as available for sale. At the end of 2023, the fair value of the securities is $650,000. In 2024, the company sells the bonds for $706,000. Which statement is true concerning the entry made to record the sale of the bonds in 2024?

a. Other comprehensive income increases by $50,000 and income increases by $6,000.

b. There is no effect on other comprehensive income, and income increases by $6,000.

c. Other comprehensive income declines by $50,000, and income increases by $6,000.

d. Other comprehensive income increases by $6,000, and there is no effect on income.

Prepare the entries to:

Recognize the purchase of the investment

Recognize the change in fair value at the end of 2023

Recognize the sale of the investment in 2024.