Beerbo purchased $1,200,000 of 8%, 5-year bonds from Mitter on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $1,249,896 at an effective interest rate of 7%. Using the effective interest method, Beerbo decreased the Available-for-Sale Debt Securities account for the Mitter bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $4,248 and $4,392, respectively.
At December 31, 2018, the fair value of the Carlin, Inc. bonds was $1,272,000. What should Beerbo report as other comprehensive income and as a separate component of stockholders' equity?
A. $8,640
B. $0
C. $30,744
D. $22,104
Answers: 1
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Beerbo purchased $1,200,000 of 8%, 5-year bonds from Mitter on January 1, 2021, with interest payabl...
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