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Wildhorse Company purchased $3450000 of 7%, 5-year bonds from Blossom, Inc. on January 1, 2021. with interest payable on July 1 and January 1.
Wildhorse Company purchased $3450000 of 7%, 5-year bonds from Blossom, Inc. on January 1, 2021. with interest payable on July 1 and January 1. The bonds sold for $3574740 at an effective interest rate of 6%. Using the effective-interest method, Wildhorse Company decreased the Available-for-Sale Debt Securities account for the Blossom, Inc. bonds on July 1. 2021 and December 31. 2021 by the amortized premiums of $11520 and $11880, respectively. At December 31, 2021, the fair value of the Blossom, Inc. bonds was $3630000. What should Wildhorse Company report as other comprehensive income and as a separate component of stockholders' equity? O $55260. O $78660. O $23400. O No entry should be made.
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