On January 1, 2012, Roswell purchased ten $1,000, 12 percent, 10-year bonds issued by E. T. Corporation at 101. The bonds pay interest on June 30 and December 31. When the bonds showed an unamortized balance of $10,070, Roswell sold them for $10,050. How much gain or loss should Roswell record on the sale?

Question

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The unamortized balance of the bonds is $10,070, and Roswell sold them for $10,050. The difference between the unamortized balance and the sale price is $20, resulting in a $20 loss.

On January 1, 2012, Roswell Purchased Ten $1,000, 12 Percent