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Oriole Company purchased $1110000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The
Oriole Company purchased $1110000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $1160796 at an effective interest rate of 7%. Using the effective interest method, Oriole Company 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 $3348 and $3492, respectively. At February 1, 2022, Oriole Company sold the Carlin bonds for $1145100. After accruing for interest, the carrying value of the Carlin bonds on February 1, 2022 was $1150500. Assuming Oriole Company has a portfolio of available-for-sale debt investments, what should Oriole Company report as a gain (or loss) on the bonds? $0. O $-15696. O $-5400. O $-10296
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