Ans:
S&L |
Amount $ |
Fair value of bond on 31st December |
844,000.00 |
Less: Purchase value of bond |
845,000.00 |
Pretax income in 2021 |
(1,000.00) |
Sale value of bond |
850,500.00 |
Less: Fair value of bond on 31st December |
844,000.00 |
Pretax income in 2022 |
6,500.00 |
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