For this question only, assume at the beginning of 2024, Ocean purchased a 10-year bond, at par, for $100,000. During the year, the bond earned interest totaling $4,200 and at year end, the bond had a fair value of $98,400.
If the bond is classified as available-for-sale, what amount of total income should Ocean report in its 2024 income statement for this bond only?
Group of answer choices
None of the answers are correct.
$4,200
$5,800
$1,600
$2,600