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7. Questions 7-10 On Jan 1, 2018, XYZ Company purchase 10% bonds having a maturity value of 5510,000, for $570,000. The bonds provide the bondholders

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7. Questions 7-10 On Jan 1, 2018, XYZ Company purchase 10% bonds having a maturity value of 5510,000, for $570,000. The bonds provide the bondholders with a 8% yield. They are dated Jan 1, 2018, and mature Jan 1, 2023 with interest receivable December 31 of each year. XYZ's business model is to hold these bonds to collect contractual cash flow.XYZ records at the date of the bond purchase as (3 Points) Cr Cash 5510.000 Gr. Debt Investments 3570.000 Debt investments 35100 Dr. Doht Investment 551003 8 Regarding to question No XYZ records the interest received for 2018 5 (3 Points O nomrest Recevitre 557000 rest 54500 500

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