Question
Consider the following facts: - On July 1, 2017, Company E purchased Company A's six-year 9% bonds with a face value of $200,000 for $196,000.
Consider the following facts: - On July 1, 2017, Company E purchased Company A's six-year 9% bonds with a face value of $200,000 for $196,000. - The purchased included $6,000 of accrued interest. - The bonds mature on March 1, 2023, and are to be held-to-maturity. - The bonds pay interest semiannually on March 1 and September 1. - Company E uses the straight-line method of amortization. The amount of income Company E should report for the calendar year 2017 as a result of this investment would be $8,823.52. $9,529.40. None of these answers are correct. $8,117.64. $9,882.36.
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