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What amount of gain should yellow corporation recognize

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Question - On July 1, 2019, YELLOW Corporation acquired an investment at amortized cost in GREEN Company's 10-yr, 12% bonds, with face value of 5,000,000 for 5,386,300. Interest is payable semi-annually on January 1 and July 1. The bonds mature on July 1, 2024. Bonds effective rate is 10%. On December 31, 2020, YELLOW sold its debt instrument at 110. What amount of gain should YELLOW corporation recognize as a result of the disposal?

a. 245,956

b. 176,604

c. 144,385

d. 210,434

Reference no: EM133024988

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