Questions $3$ and $4$ are based on the following information.

Kennedy Co$.$ purchased, as an available$-$for$-$sale investment, $$100,000$ of $8\%,5-$year bonds from Ekberg, Inc. on January $1,2024,$ with interest payable on July $1$ and January $1.$ The bonds sold for $$104,158$ at an effective interest rate of $7\%.$ Using the effective interest method, Kennedy Co$.$ decreased the Debt Investments account for the Ekberg, Inc. bonds on July $1,2024$ and December $31,2024$ by the amortized premiums of $$354$ and $$366,$ respectively.

$3.$ At December $31,2024,$ the fair value of the Ekberg, Inc. bonds was $$106,000.$ What should Kennedy Co$.$ report as other comprehensive income and as a separate component of stockholders' equity?

a$.$ $$720$

b$.$ $$1,842$

c$.$ $$2,562$

d$.$ No entry should be made

$4.$ At February $1,2025,$ Kennedy Co$.$ sold the Ekberg bonds for $$103,000.$ After accruing for interest, the carrying value of the Ekberg bonds on February $1,2025,$ was $$103,375.$ Assuming Kennedy Co$.$ has a portfolio of Available$-$for$-$Sale Debt Securities, what should Kennedy Co$.$ report as a gain $($loss$)$ on the bonds?

a$.$ $$0$

b$.$ $$(375)$

c$.$ $$(2,187)$

d$.$ $$(2,937)$