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JUMS Save Answ Hawk Corporation purchased 10.000 Diamond Corporation bonds in 2018 for $58 per bond and classified the invest
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Answer #1

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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