Question
On January 1, 2019, Bravo Industries purchased $900,000 of 8% bonds from RL Enterprises. The bonds are classified as FV-OCI. Bravo paid $937,422 for the
On January 1, 2019, Bravo Industries purchased $900,000 of 8% bonds from RL Enterprises. The bonds are classified as FV-OCI. Bravo paid $937,422 for the bonds, which will mature January 1, 2024. Interest on the bonds is payable each July 1 and January 1. The effective interest rate on the bonds is 7%. On December 31, 2019, the fair value of the bonds was $954,000. How much other comprehensive income should Bravo report?
$16,578.
$6,480.
$23,058.
$0.
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Principles Of Auditing
Authors: O. Ray Whittington, Kurt Pany, Walter B. Meigs
12th Edition
0256167796, 978-0256167795
