A) On January 1, 2021, Peaceful Company buys some bonds of another company at par. Peaceful Company classifies the debt investment as held-to-maturity and reports the following information about the bonds it purchased: Item Amount Face value $277,000 Stated rate 13% Fair value on December 31, 2021 $354,000 How much does Peaceful Companys stockholders equity increase during 2021 because of this investment? $36,010 $0 $113,010 $77,000

B)

On January 1, 2020, Mordor Co. buys some bonds of another company, then sells them on January 1, 2021. Mordor Co. classified the debt investment as available-for-sale and reports the following information about the bond:

Item	Amount
Face value	$531,000
Purchase price	$571,000
Amortization for 2020	$2,000
Fair value on December 31, 2020	$606,000
Sale price on January 1, 2021	$604,000

How much Gain/Loss on Sale of Investments should Mordor Co. report for the sale on January 1, 2021? (a positive number is a gain and a negative number is a loss)

$35,000

$73,000

$33,000

($2,000)

Item at position 6

6