BlueCorporationissuedbondsfor$1,000wheninterestrateswerelow.Afterafewyears,inter- est rates increased and the bond value declined to $850. Blue...

BlueCorporationissuedbondsfor$1,000wheninterestrateswerelow.Afterafewyears,inter- est rates increased and the bond value declined to $850. Blue Corporation purchased the bonds on the open market. Blue will recognize $150 of income from the discharge of indebtedness.