Mazzeo Company acquires 80 Dodd's 10%, 5 year, $1,000 bonds on January 1, 2017 for $80,000. If Mazzeo sells all of its Dodd's Bonds for $78,900 what gain or loss is recognized?

Name: Mazzeo Company acquires 80 Dodd's 10%, 5 year, $1,000 bonds on January 1, 2017 for $80,000. If Mazzeo sells all of its Dodd's Bonds for $78,900 what gain or loss is recognized?
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Question

Quizplus · Accepted Answer

Mazzeo Company purchased the bonds for $80,000 and sold them for $78,900, resulting in a loss of $1,100 ($80,000 - $78,900).

Mazzeo Company Acquires 80 Dodd's 10%, 5 Year, $1,000 Bonds