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Your answer is partially correct. Following the three - step approach, prepare the journal entries for the sale of the bond on December 3 1

Your answer is partially correct.
Following the three-step approach, prepare the journal entries for the sale of the bond on December 31,2024. Include the
reclassification of unrealized gains and losses to net income. (Credit account titles are automatically indented when the
amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0
for the amounts. List all debit entries before credit entries. Round answers to 0 decimal places, e.g.5,275.
Account Titles and Explanation
(To record fair value adjustment to date of disposal)
FV-OCI Investments
(To record disposal of the bond)
Loss on Disposal of Investments FV-OCI
Unrealized Gain or Loss - OCl
(To reclassify accumulated unrealized gains and losses from OCI to
net income)
eTextbook and Media On July 1,2023, Concord Aggregates Ltd. purchased 6% bonds with a maturity value of $170,000 for $176,095. The bonds provide
the bondholders with a 5% yield. The bonds mature four years later, on July 1,2027, with interest receivable June 30 and December
31 of each year. Concord uses the effective interest method to allocate unamortized discount or premium. The bonds are accounted
for using the FV-OCI model with recycling. Concord has a calendar year end. The fair value of the bonds at December 31,2023 and
2024, was $175,635 and $173,819, respectively. Assume fair value adjustments are recorded at year end only. Immediately after
collecting interest on December 31,2024, the bonds were sold for $173,819. Please solve the attached image.
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