QUESTION 23 Jonathan Corp. purchased a bond as an investment. Cash Coupon Payment Interest Revenue Discount Amortization Date 1/1/13 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $18,007 $18,120 $18,237 $18,358 $18,484 $18,614 $3,007 $3,120 $3,237 $3,358 $3,484 $3,614 Amortized Cost $480,181 $483,188 $486,308 $489,544 $492,902 $496,386 $500,000 The bonds were purchased as an investment for $480,181 on 1/1/13. The fair value of the bonds at 12/31/13 is $480,000. The fair value of the bonds at 12/31/14 is $485,000. If the bonds are classified as Trading Securities then the effect of the bonds on net income in 2014 is: increases net income by $13,120 increases net income by $23,120 increases net income by $18,120 increases net income by $20,000 decreases net income by $1,307