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Addison Company purchased $1,500,000 of 10% bonds of Charles Company on January 1, 2021, paying $1,410,375, providing an effective yield of 11%. The bonds mature
Addison Company purchased $1,500,000 of 10% bonds of Charles Company on January 1, 2021, paying $1,410,375, providing an effective yield of 11%. The bonds mature January 1, 2031; interest is received each July 1 and January 1. Addison Company uses the effective-interest method and plans to hold these bonds to maturity. On July 1, 2021, Addison should increase its Debt Investments account for the Charles Company bonds by
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