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Clive's Co. purchased $500,000 of 8%, 5-year bonds from John's Inc on January 1, 2021, with interest payable on July 1 and January 1. The
Clive's Co. purchased $500,000 of 8%, 5-year bonds from John's Inc on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $520,790 at an effective interest rate of 7%. Using the effective interest method, Clive's Co. decreased the non-trading Debt Investments account for the John's Inc bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $1,770 and 51,830, respectively. At December 31, 2021, the fair value of the John's Inc. bonds was $530,000. What should Clive's Co. report as other comprehensive income and as a separate component of equity? elect one: $12,810 No entry should be made. $3,600 $9,210
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