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7. Questions 7-10: On Jan 1, 2018, XYZ Company purchase 10% bonds, having a maturity value of $510,000, 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 $510,000, 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) $510,000 Dr. Debt Investment Dr. Debt Investments... $570,000 $570,000 Cr. Debt Investments $510,000 Cr. Cash

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