Multiple Choice
Daniel purchased a bond on July 1, 2017, at par of $10,000 plus accrued interest of $300. On December 31, 2017, Daniel collected the $600 interest for the year. On January 1, 2018, Daniel sold the bond for $10,200.
A) Daniel must recognize $300 interest income for 2017 and a $200 gain on the sale of the bond in 2018.
B) Daniel must recognize $600 interest income for 2017 and a $200 gain on the sale of the bond in 2018.
C) Daniel must recognize $600 interest income for 2017 and a $100 loss on the sale of the bond in 2018.
D) Daniel must recognize $300 interest income for 2017 and a $100 loss on the sale of the bond in 2018.
E) None of these.
Correct Answer:
Verified
Correct Answer:
Verified
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