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Crane Company purchased $ 900000 of 11% bonds of Scott Company on January 1, 2021, paying $ 848385. The bonds mature January 1, 2031; interest
Crane Company purchased $ 900000 of 11% bonds of Scott Company on January 1, 2021, paying $ 848385. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of $ 51615 provides an effective yield of 12%. 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:
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