What is the gain on the sale


During 2005, Plano Co. purchased 2,000, $1,000, 9% bonds. The carrying value of the bonds at December 31, 2007 was $1,960,000. The bonds mature on March 1, 2012, and pay interest on March 1 and September 1. Plano sells 1,000 bonds on September 1, 2008, for $988,000, after the interest has been received. Plano uses straight-line amortization. what is the gain on the sale ?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What is the gain on the sale
Reference No:- TGS0100370

Expected delivery within 24 Hours