Business, 13.11.2019 06:31 darrengresham999

On january 1, 2014, corporation a purchases bonds in corporation b. the bonds have a par value of $50,000 and a stated interest rate of 6%, with annual interest payments on december 31 and a maturity date of december 31, 2023. corporation a purchases the bonds for $43,290 to yield 8% interest, and holds the bonds in its trading account. on december 31, 2014, the fair value of the bonds is $45,000. when the bond market opens on january 2, 2015, corporation b sells the bonds for an amount intended to achieve a 7% yield for corporation a. disregarding accrued interest, what gain (rounded to whole dollars) should corporation a recognize on the bonds in 2015?

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On january 1, 2014, corporation a purchases bonds in corporation b. the bonds have a par value of $5...