On November 1, 2021,PharoahCompany purchasedWildhorse, Inc.,10-year,10%, bonds with a face value of $840000, for $760000. An additional $28000was paid for the accrued interest. Interest is payable semiannually on January 1 and July 1. The bonds mature on July 1, 2028.Pharoahuses the straight-line method of amortization. Ignoring income taxes, the amount reported inPharoah's 2021 income statement as a result ofPharoah's available-for-sale investment inWildhorsewas

$16000.

$14000.

$15300.

$12700.

CraneCompany purchased $1190000of8%,5-year bonds from Carlin, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $1239996at an effective interest rate of7%. Using the effective interest method,CraneCompany decreased the Available-for-Sale Debt Securities account for the Carlin, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $4148and $4292, respectively.

At February 1, 2022,CraneCompany sold the Carlin bonds for $1225900. After accruing for interest, the carrying value of the Carlin bonds on February 1, 2022 was $1230500. AssumingCraneCompany has a portfolio of available-for-sale debt investments, what shouldCraneCompany report as a gain (or loss) on the bonds?

$-4600.

$0.

$-14096.

$-9496.