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E17.7 On January 1, 2019, Roosevelt Company purchased 129% bonds having a maturity value of $500,000 for $537,907 40. The bonds provide the bondholders with
E17.7 On January 1, 2019, Roosevelt Company purchased 129% bonds having a maturity value of $500,000 for $537,907 40. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2019, and mature January 1, 2024, with interest received December 31 of each year. Roosevelt's business model was originally to hold these bonds to collect contractual cash flows Now, assume that Roosevelt elected the fair value option for this held-for-collection investment Instructions a. Prepare any entries necessary at Dece bonds is $540,000. b. Prepare any entries necessary at December 31, 2020, assuming the fair value of the bonds is $525,000. ber 31, 2019, assuming the fair value of the to search hp
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