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Cullumber Company purchased $1550000 of 11% bonds of Scott Company on January 1, 2018, paying $1458375. The bonds mature January 1, 2028; interest is payable
Cullumber Company purchased $1550000 of 11% bonds of Scott Company on January 1, 2018, paying $1458375. The bonds mature January 1, 2028; interest is payable each July 1 and January 1. The discount of $91625 provides an effective yield of 12%. Cullumber Company uses the effective-interest method and plans to hold these bonds to maturity. On July 1, 2018, Cullumber Company should increase its Debt Investments account for the Scott Company bonds by?
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