Barr Company acquires 60, 10%, 5 year, $1,000 Community bonds on January 1, 2010 for $61,250. This includes a brokerage commission of $1,250.
If Barr sells all of its Community bonds for $62,500 and pays $1,500 in brokerage commissions, what gain or loss is recognized?
A) Gain of $2,500
B) Loss of $250
C) Gain of $250
D) Gain of $1,250
Correct Answer:
Verified
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