During 2023, Novak Inc. purchased 2400, $1000, 8% bonds. The bonds mature on March 1, 2028 and pay interest on March 1 and September 1. The carrying value of the bonds at December 31, 2023 was $1967250. On September 1, 2024, after the semi-annual interest was received, Brandon sold half of these bonds for $1021500. Novak uses straight-line amortization and has accounted for the bonds under the amortized cost model. The gain on the sale is O $37875. O $0. $3255. O $72495.

During 2023, Novak inc purchased 2400,\$1000, Ass bonds. The bonds mature on March 1, 2028 and pwyinterest an March 1 and Seatember 1. The carrying value of the bonds at December 31.2023 was 51967250 . On September 1. 2004, atter the semi anrual interest wasrecehed, Brandon sold half of these bonds for 51021500 Novakuses stratidt -iline amertization and has aceourked for the bonds under the amortized cost poodel The gain an the sale is 537875 50. $3255. $72495