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Please give me a detailed solution. 25. During 2020, Brandon Inc. purchased 2,000,...

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Accounting

imagePlease give me a detailed solution.

25. During 2020, Brandon Inc. purchased 2,000, $ 1,000, 9% bonds. The bonds mature on March 1, 2025, and pay interest on March 1 and September 1. The carrying value of the bonds at December 31, 2020 was $ 1,960,000. On September 1, 2021, after the semi-annual interest was received, Brandon sold half of these bonds for $ 988,000. Brandon uses straight-line amortization and has accounted for the bonds under the amortized cost model. The gain on the sale is a) $ 11,200. b) $ 8,000. c) $ 4,800. d) $ 0. Answer: 0

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