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Find what amount of gain yellow corporation recognize

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Problem 1: On July 1, 2019, YELLOW Corporation acquired an investment at amortized cost in GREEN Company's 10-yr, 12% bonds, with face value of ?5,000,000 for ?5,386,300. Interest is payable semi-annually on January 1 and July 1. The bonds mature on July 1, 2024. Bonds effective rate is 10%. On December 31, 2020, YELLOW sold its debt instrument at 110. What amount of gain should YELLOW corporation recognize as a result of the disposal?

Option 1: ? 245,956
Option 2: ? 176,604
Option 3: ? 144,385
Option 4: ? 210,434

Reference no: EM132953537

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