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Exercise 17-5 On January 1, 2017, Sarasota Company acquires $330,000 of Spiderman Products, Inc., 996 bonds at a price of $298,833. Interest is received on
Exercise 17-5 On January 1, 2017, Sarasota Company acquires $330,000 of Spiderman Products, Inc., 996 bonds at a price of $298,833. Interest is received on January 1 of each year, and the bonds mature on January 1 2020 The investment will provide Sarasota Company a 13% y eld. 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 Bond Discount Carrying Amount Date Received _Revenue Amortization of Bonds 1/1/20 SHOW LIST OF ACCOUNTS LINK TO TEXT
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