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Ace Company purchased 10,000 bonds issued by Jack Company in 2018 for $66 per bond and classified the investment as securities available-for-sale. The value of
Ace Company purchased 10,000 bonds issued by Jack Company in 2018 for $66 per bond and classified the investment as securities available-for-sale. The value of the Jack investment was $77 per bond on December 31, 2019, and $106 per bond on December 31, 2020. During 2021, Ace sold all of its Jack investment at $146 per bond. In its 2021 income statement, Ace would report: Multiple Choice O A gain of $400,000. o A gain of $400,000. O A gain of $1,200,000. A gain of $800,000
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