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Crane Company purchased $900000 of 11% bonds of Scott Company on January 1, 2021, paying $834375. The bonds mature January 1, 2031; interest is payable

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Crane Company purchased $900000 of 11% bonds of Scott Company on January 1, 2021, paying $834375. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of $65625 provides an effective yield of 12%. 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 $1125. $3281. $563. $6563

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