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11. Patton Company purchased 6400,000 of 10% bonds of Scott Co. on January 1,2022 , Page 4 paying e376,100. The bonds mature January 1,2032 ;
11. Patton Company purchased 6400,000 of 10% bonds of Scott Co. on January 1,2022 , Page 4 paying e376,100. The bonds mature January 1,2032 ; interest is payable each July 1 and January 1 . The discount of e23,900 provides an effective yield of 11%. Patton Company uses the effective-interest method and holds these bonds for collection. On July 1, 2022, Patton Company should increase its Debt Investments account for the Scott Co, bonds by a. e2,392. b. 1,371 c. 1,196. d. 686
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