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Olindo Company sells Gishs bonds that cost $40,000 for $45,000, including $ 500 of accrued interest. In recording the sale, Olindo books a $5,000 gain.

Olindo Company sells Gishs bonds that cost $40,000 for $45,000, including $ 500 of accrued interest. In recording the sale, Olindo books a $5,000 gain. Is this correct? Explain.

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