Answer : $ 2000
Working Notes
We have been provided with the following information
Tempest Co. purchased 60, 6% Urich Company bonds for $60,000 cash
Interest is payable on two different date i.e. semiannually on July 1 and January 1.
30 of the securities are sold for $32,000,
credit to gain on sale of debt investments will as follow
Total cost for 60 units are $ 60000 so cost for 30 units will be $ 30,000 .Interest will not be considered in this case so we should not considered the informaton or interest
Bonds were sold for $ 32,000 so gain on debt security will be calculted as follo
| Particular | Amount |
| Sale price | 32,000 |
| Less : Cost | (30,000) |
| Gain | 2,000 |
the entry would include a credit to gain on sale of debt investments for $ 2,000
