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QUESTION 31 Warren Buffett has had bonds payable of $20,000 outstanding for several years. On January 1, 2020, there was an unamortized discount of $2,000

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QUESTION 31 Warren Buffett has had bonds payable of $20,000 outstanding for several years. On January 1, 2020, there was an unamortized discount of $2,000 with a remaining life of 10 years, Warren Buffett's parent, Bill Gates purchased the bonds in the open market for $21,000. Warren Buffett is a 90% owned subsidiary of Bill Gates. The bonds pay 8% interest annually on December 31. The companies use the straight line method to amortize interest revenue and expense. Compute the consolidated yain or loss on a consolidated income statement for 2020. $3,000 gain 53,000 loss. $1,000 loss $1,000 gain None of the above

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