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Sun Corporation buys and sells debt securities which it classifies as trading securities.The company's fiscal year...

Sun Corporation buys and sells debt securities which it classifies as trading securities.The company's fiscal year ends on December 31.On Decenber 27,2021,Sunshine purchased Northern
Communications bonds at par for$520,000.At December 31,the bonds had a fair value of 574,000.On January 3,2022,the bonds were sold for$607,000.The amount included in 2022 net
income as a result of this investment would be:

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Answer #1

For the year ended December 31, 2022 the company will show a profit of 607000-574000

That is of 33000,

Income will be calculated from the last fair value to sale price.

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