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Exercise 17-5 On January 1, 2017, Sarasota Company acquires $210,000 of Spiderman Products, Inc., 990 bonds at a price of $199,736. Interest is received on
Exercise 17-5 On January 1, 2017, Sarasota Company acquires $210,000 of Spiderman Products, Inc., 990 bonds at a price of $199,736. Interest is received on January 1 of each year, and the bonds mature on January 1, 2020. The investment will provide Sarasota Company a 11% yield. The bonds are classified as held-to-maturity. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. Round answers to o decimal places, e.g. 2,500.) Schedule of Interest Revenue and Bond Discount Amortization Straight-line Method Bond Purchased to Yield Cash Interest Bnd Discount Carrying Amount Revenue Amortization Date Received of Bonds 1/1/20
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