Problemon july 1 2016 aldrich company purcahsed as an, Ask an Expert

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On July 1, 2016, Aldrich Company purcahsed as an available for sale security $200,000 face value, 9% U.S Treasury notes for $194,000. The notes mature July 1, 2017, and payinterest semiannually on January 1 and July 1. The notes were sold on December 1, 2016, for $199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statememt for the year ended December 31, 2016, what amount should Aldrich report as a gain on the sale of teh available for sale security?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92719671

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