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Blossom Company purchased $3500000 of 9%, 5-year bonds from Ritter, Inc. on January 1 2018, with interest payable on Jul 1 and January 1 The
Blossom Company purchased $3500000 of 9%, 5-year bonds from Ritter, Inc. on January 1 2018, with interest payable on Jul 1 and January 1 The bonds sold or S36, 74 at an e ective interest rate of 8%. Using the effective-interest method, Blossom Company decreased the Available for Sale Debt Securities account for the Ritter, Inc. bonds on Jun 2018 and December 3 018 y the amortized premiums of $11620 and $11980, respectively At April 1, 2019, Blossom Company sold the Ritter bonds for $3590000. After accruing for interest, the carrying value of the Ritter bonds on April 1, 2019 was $3597440. Assuming Blossom Company has a portfolio of Available-for-Sale Debt Securities, what should Blossom Company report as a gain or loss on the bonds? $S 0 $-114740 O $-23600. $-7440
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