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11 November, 03:00

Company purchased $60,000 of Stanton Company's 12% bonds at 100 plus accrued interest of $2,400. On June 30, Pierce received its first semiannual interest. On February 1, Pierce sold $50,000 of the bonds at 103 plus accrued interest. What are the total proceeds from the February 1 sale?

a. $52,000

b. $50,000

c. $52,400

d. $51,500

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  1. 11 November, 05:34
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    d. $51,500

    Explanation:

    Proceed from sale of the bonds

    face value x quote

    50,000 x 103/100 = 51,500

    The company will recognize a gain from the sale of 1,500 dollars as it sold the investment for 51,500 while it was valued at 50,000 in their books
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