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  3. 24) on january 1, 2021, major company acquires $50

24) On January 1, 2021, Major Company acquires $500,000 of Minor Company's 5-year, 8% bonds...

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Accounting

24) On January 1, 2021, Major Company acquires $500,000 of Minor Company's 5-year, 8% bonds at a price of $650,000 to yield 6%. Interest is payable each December 31. The bonds are classified as held-to-maturity. Assuming that Major Company uses the effective-interest method, what is the amount of interest revenue that would be recognized in 2022 related to these bonds?

25) Investments in equity securities are adjusted to fair value at the end of the period. (True/False)

26) During 2021 Major Company purchased 8,000 shares of Minor, Inc. for $10 per share. During the year Major Company sold 2,000 shares of Minor, Inc. for $23 per share. At December 31, 2021 the market price of Minor, Inc.'s stock was $25 per share. What is the total amount of gain/(loss) that Major Company will report in its income statement for the year ended December 31, 2021 related to its investment in Minor, Inc. stock?

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