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On January 1, 2019, the partnership Lastrapes and Lastrapes purchased $1,000,000 of The McDaniel Company’s bonds....

On January 1, 2019, the partnership Lastrapes and Lastrapes purchased $1,000,000 of The McDaniel Company’s bonds. The bonds have a stated rate of 7% and pay interest on January 1 and July 1 of each year. Lastrapes and Lastrapes consider this investment trading debt. The investment was worth $1,200,000 on December 31, 2019.

Assume Lastrapes and Lastrapes consider this investment available-for-sale debt. What would be the difference in the reported net income for Lastrapes and Lastrapes in 2019?

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