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On January 1 , 2 0 2 0 , Apple Co . purchased held - for - collection and sales bonds par value $ 2

On January 1,2020, Apple Co. purchased held-for-collection and sales bonds par value $2,000,000,9% paying $1,920,000. The bonds mature on January 1,2025, and pay interest on July 1 and January 1. Apple Co. sells these bonds on January 1,2023, for 2,025,000, after the interest has been received. If the carrying value of the bonds at the selling date was 1,966,500. Apple Co. uses effective interest amortization (10% effective interest rate). The gain on the sale is:
A.80,000.
B.25,000.
C.58,500.
D.33,500.
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