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Kerr Company had the following transactions in bond investment held as trading for the current year. Mar.1 Purchased 2,000, P1,000, 12% bonds of Walsh Company
Kerr Company had the following transactions in bond investment held as trading for the current year.
Mar.1 Purchased 2,000, P1,000, 12% bonds of Walsh Company at 93 excluding accrued interest. Interest is payable on February 1 and August 1.
Apr. 1 Purchased 4,000, P1,000, 12% bonds of Penny Corporation at 95 plus accrued interest. Interest is payable March 1 and September 1.
Oct. 1 Sold 1,000 of the Penny bonds at 105 excluding accrued interest.
Required:
How much is the gain on sale of the bonds on October 1?
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