What is the amount of net income recognized

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On July 1, 2008, J.C. Penney purchased 8-year, 12% bonds having maturity a value of $598,000. Interest is paid semi-annually on June 30 and December 31 and the bonds provide the bondholders a 8% yield. J.C. Penney uses the effective-interest method to amortize discount or premium. At the time of acquisition, the bonds were classified as trading. The fair value of the bonds on December 31, 2011 is $558,000. The fair value of the bonds as of December 31 of the immediately preceding year (prior measurement date) was $593,000. What is the amount of net income recognized in the 2011 income statement solely as a result of these bonds? (Note: if the net amount results in a loss, enter a minus sign '-' prior to the amount. If the net amount results in income, enter the amount as a positive amount.)

Reference no: EM131850092

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