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At the end of 2018, Plano Company purchased 5,000, $1,000,8% bonds. The carrying value of the bonds at December 31, 2018 was $4,700,000. The bonds
At the end of 2018, Plano Company purchased 5,000, $1,000,8% bonds. The carrying value of the bonds at December 31, 2018 was $4,700,000. The bonds mature on Dec. 31, 2023, and pay interest on June 30 and Dec 31. Plano sells 2,000 bonds on September 1, 2019, for $1,892,000, after the interest has been received. Plano uses straight-line amortization. The gain or loss on the sale is a. gain $4,000. gain $32,000 b. loss $32,000. C. loss $4,000. d
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