Question
Bruce Company purchased $2,000,000 of Clarence, Incorporated, 4.0% bonds at par on July 1, with interest paid semi-annually. Bruce determined that it should account for
Bruce Company purchased $2,000,000 of Clarence, Incorporated, 4.0% bonds at par on July 1, with interest paid semi-annually. Bruce determined that it should account for the bonds as an available-for-sale investment. At December 31, the Clarence bonds had a fair value of $2,300,000. Bruce sold the Clarence bonds on July 1 of the following year for $1,950,000.
Required:
Complete the following table to show the effect of the Clarence bonds on Bruces net income, other comprehensive income, and comprehensive income for each of the two years, and cumulatively over the two-year period.
Please fill in the empty cells with the formulas needed as well! Thank you
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