Barr Company acquires 50, 10%, 5 year, €1,000 Community bonds on January 1, 2014 for €50,000. If Barr sells all of its Community bonds for €49,000, what gain or loss is recognized?

Name: Barr Company acquires 50, 10%, 5 year, €1,000 Community bonds on January 1, 2014 for €50,000. If Barr sells all of its Community bonds for €49,000, what gain or loss is recognized?
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Question

Quizplus · Accepted Answer

The bonds were purchased for €50,000 and sold for €49,000, resulting in a loss of €1,000.

Barr Company Acquires 50, 10%, 5 Year, €1,000 Community Bonds