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SELLING INVESTMENTS IN BONDS

6 May, 2015 - 17:10

If a discount has been amortized in the current year, it is subtracted from the carrying value of the bond. A premium is added to the carrying amount of the bond. When the proceeds of a sale are greater than the ending carrying amount of the bond, a gain has been realized. A loss is realized when the proceeds of a sale are less than the ending carrying amount.