Appling Enterprises issued 9% bonds with a face amount of $500,000 on January 1, 2021. The bonds sold for $457,102 and mature in 2040 (20 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. Appling determines interest expense at the effective rate. Appling elected the option to report these bonds at their fair value. The fair values of the bonds at the end of each quarter during 2021 as determined by their market values in the over-the-counter market were the following:

March 31 June 30 September 30 December 31 $480,000 460,000 456,000 463,000 General (risk-free) interest rates did not change during 2021. Required: 1. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the March 31 quarterly financial statements? 2. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the June 30 quarterly financial statements? 3. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the September 30 quarterly financial statements? 4. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the December 31 annual financial statements? (For all requirements, do not round your intermediate calculations.) Answer is not complete. 1. 2. 3. Appling's comprehensive income will be Appling's comprehensive income will be Appling's comprehensive income will be Appling's comprehensive income will be decreased decreased increased decreased by by by by 4