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Crane Company purchased $1450000 of 9% bonds of Scott Company on January 1, 2021, paying $1359649. The bonds mature January 1, 2001; interest is payable
Crane Company purchased $1450000 of 9% bonds of Scott Company on January 1, 2021, paying $1359649. The bonds mature January 1, 2001; interest is payable each July 1 and January 1. The discount of $90351 provides an effective yield of 1036 Crane Company uses the effective interest method and plans to hold these bonds to maturity. For the year ended December 31, 2021, Crane Company should report interest revenue from the Scott Company bonds of: O $139535 5136101 5135964 O $130500
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