Question
At the end of 2017, shiva purchased 1,000, $1,000, 8% bonds. the carrying value of the bonds at December 31, 2017 was $984,800. the Bonds
At the end of 2017, shiva purchased 1,000, $1,000, 8% bonds. the carrying value of the bonds at December 31, 2017 was $984,800. the Bonds mature on march 1, 2021 and pay interest on march 1 and September 1. Shiva sells 500 bonds on September 1, 2018, for $495,000, after the interest has been received. shiva uses straight-line amortization.
What is the gain on sale?
____
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Auditing The Art and Science of Assurance Engagements
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser
12th Canadian edition
133098230, 978-0132791564, 132791560, 978-0133098235
