The ABC Company issued 8% bonds with face amount of $400,000 on January 1,2024

- The bonds mature in 2043 (20 years) For bonds of similar risk and maturity the market yield was 10%.

- Interest is paid semiannually on June 30 and December 31

- The company determines interest expense at the effective rate

- ABC Company elected the option to report these bonds at their fair value

- The fair values of the bonds at the end of December 31, 2024 as determined by their market values in the over-the-counter: 342,000

General (risk free) interest rates did not change during 2024.

-PV annuity: 5%, 40 = 17.15909

-PV annuity: 4%, 40 = 19.79277

-PV single sum: 5%, 40 = .14205

-PV single sum: 4%, 40 = .20829

Required:

1. By how much will ABC Companys comprehensive income be increased or decreased by the bonds (ignoring taxes) in the December 31 annual financial statements?