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On Jan. 1, 2015, Garfield Co. purchased $80,000 of 9%, 5-year bonds of Chester Co. for $74,086, which provided an 11% yield. The bonds pay
On Jan. 1, 2015, Garfield Co. purchased $80,000 of 9%, 5-year bonds of Chester Co. for $74,086, which provided an 11% yield. The bonds pay interest annually on Dec. 31. The fair value of the bonds is $75,500 at end of 2015. (1) If Garfield holds these bonds for collection of contractual cash flows (including interest and principal payments), at the end of 2015, the amount of interest revenue Garfield recognizes is ; the net carrying amount of the investment reported on the balance sheet at the end of 2015 is and The amount of holding gain(loss) recognized in net income in 2015 is - (2) If Garfield holds these bonds for trading profit in the near term from changes in market interest rates, at the end of 2015, the amount of interest revenue Garfield recognizes is ; the net carrying amount of the investments reported on the ; The amount of holding balance sheet at the end of 2015 is gain (loss) recognized in net income in 2015 is
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