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Carsen Company purchased 200,000 of 10% bonds of Garrison Co. on January 1, 2019, paying 211.950. The bonds mature January 1, 2029: interest is payable
Carsen Company purchased 200,000 of 10% bonds of Garrison Co. on January 1, 2019, paying 211.950. The bonds mature January 1, 2029: interest is payable each July 1 and January 1. The discount of 11.950 provides an effective yield of 9%. Carsen's objective is to hold the bonds to collect the contractual cash flows. Carsen Company uses the effective interest method. On July 1, 2019, Carsen Company should decrease its Held-for-Collection Debt Invements account for the Garrison Co. bonds by: O a 462 O b. 924. Oc 808 O'd 1598
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