Question $31$ of $40$

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Pharoah Company purchased $$3200000$ of $9\%,5-$year bonds from Wildhorse, Inc. on January $1,2025$ with interest payable on July $1$ and January $1.$ The bonds sold for $$3333056$ at an effective interest rate of $8\%.$ Using the effective$-$interest method, Pharoah decreased the Available$-$for$-$Sale Debt Securities account for the Wildhorse bonds on July $1,2025$ and December $31,2025$ by the amortized premiums of $$11020$ and $$11380,$ respectively. At April $1,2026,$ Pharoah sold the Wildhorse bonds for $$3290000.$ After accruing for interest, the carrying value of the Wildhorse bonds on April $1,2026$ was $$3297440.$ Assuming Pharoah has a portfolio of Available$-$for$-$Sale Debt Securities, what should Pharoah report as a gain or loss on the bonds?

$$ $$0$

$$ $$(54384)$

$$(86796)$

$$ $$(7440)$

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