Homework Answers
From 2018 to 2020, Hawk Unrealized gain = ($110 - $58) * 10,000 bonds
Hawk Unrealized gain = $52 * 10,000 bonds
= $520,000
An additional gain in 2021 = ($145 - $110) * 10,000 bonds
= $350,000
Hawk would report gain in the income statement = $520,000 + $350,000
= $870,000
Option A gain of $870,000 is the correct answer.
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