DEBT INVESTMENT: PREMIUM BOND, TRADING

On January $1,2025,$ Stave Company started an investment portfolio and purchased $$1,000,000$ of

bonds for $$1,056,572.$ The bonds mature in $3$ years and pay $5\%$ interest every December $31.$ On

December $31,2025,$ the fair value of the bonds was $$1,060,000.$ On December $31,2026,$ the fair value

of the bonds was $$1,240,000.$ On December $31,2025,$ the fair value of the bonds was $$1,555,000.$

Stave designates this security as trading.

On November $15,2025,$ Stave sold this security for $$1,450,000.$