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Crane Company purchased $2050000 of 10% bonds of Scott Company on January 1, 2021, paying $1938375. The bonds mature January 1, 2031; interest is payable

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Crane Company purchased $2050000 of 10% bonds of Scott Company on January 1, 2021, paying $1938375. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of $111625 provides an effective yield of 11%. Crane Company uses the effective interest method and plans to hold these bonds to maturity. On July 1, 2021, Crane Company should increase its Debt Investments account for the Scott Company bonds by $11163 $5581. $8221. $4111

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