Question

Rain Technology purchases $80,000, 5% bonds of Lightyear Services Company on January 1, 2024. They sell the bonds on July 14, 2027, for $83,000. What is the gain or loss on the sale?

a. $2,000 loss
b. $3,000 gain
c. $1,000 gain
d. $2,000 gain

Answer 1

Rain Technology experienced a $3,000 gain from selling the Lightyear Services Company bonds, calculated by subtracting the purchase price from the sale price.

Step-by-step explanation:

The subject of the question pertains to calculating the gain or loss on the sale of bonds in the field of business finance. Rain Technology purchased bonds for $80,000 and sold them for $83,000. To calculate the gain or loss, we subtract the purchase price from the sale price: $83,000 (sale price) - $80,000 (purchase price) = $3,000. Thus, Rain Technology realized a $3,000 gain on the sale of the bonds.