If the proceeds from the sale of bond investments exceed the carrying amount of the bonds, a gain is realized.

Question

Quizplus · Accepted Answer

When the proceeds from the sale of bond investments exceed the carrying amount of the bonds, the difference is recognized as a gain. This is because the selling price is higher than the original purchase price (carrying amount), resulting in a positive difference. Therefore, a gain is realized.

If the Proceeds from the Sale of Bond Investments Exceed