How much is the gain on sale for louis company

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Question 1: On January 1, 2019, Louis Company invested in ABCD Bonds 8% face value and classified it as financial assets at fair value through profit or loss. The entity paid $ 900,000 for the bonds. The bonds were selling at 95 and 97 at December 31, 2019 and 2020. Since the entity's business model is to take advantage of fluctuations in the market, the entity sold 1/4 of the bonds on October 1, 2020 for total cash of consideration $255,000 (inclusive of accrued interest). How much is the gain (loss) on sale?

Reference no: EM132607255

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