Question: Robinson Company purchased 700,000 of 8% bonds of Evermaster Corporation on January 1, 2015, at a discount, paying 645,946. The bonds mature January 1, 2020 and yield 10%; interest is payable each July 1 and January 1.

Assume that Robinson Company sells its investment on November 1, 2018, at 80 plus accrued interest.

a) Robinson records this discount amortization as follows:

b) Computation Gain/Loss on Sale of Bonds and Journal entry.