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4. On September 1, 2020, ABC Company purchased 600 of the 1,000 face value, 9% bonds of XYZ Company, for 625,000 (an 8% effective interest

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4. On September 1, 2020, ABC Company purchased 600 of the 1,000 face value, 9% bonds of XYZ Company, for 625,000 (an 8% effective interest rate). The bonds, which mature on September 1, 2025, pay interest semiannually on March 1 and September 1. Assuming that ABC Co. uses the effective interest method of amortization and that the bonds are appropriately classified as non- trading, the net carrying value of the bonds should be shown on ABC's Co. December 31, 2019, statement of financial position at (4 Points) 600,000 625,000 623 667 622 333

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