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Exercise 17-5 (Part Level Submission) On January 1, 2017, Riverbed Company acquires $270,000 of Spiderman Products, Inc., 9% bonds at a price of $244,500. Interest
Exercise 17-5 (Part Level Submission) On January 1, 2017, Riverbed Company acquires $270,000 of Spiderman Products, Inc., 9% bonds at a price of $244,500. Interest is received on January 1 of each year and the bonds mature on January 1, 2020, The investment will provide Riverbed Company a 13% yield. The bonds are classified as held-to-maturity (a) Your answer is correct. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to 0 decimal places, e.g. 2,500.) Schedule of Interest Revenue and Bond Discount Amortization Straight-line Method Bond Purchased to Yield Cash Received Interest Revenue Bond Discount Carrying Amount Amortization Date of Bonds 244500 24300 32800 32800 32800 8500 253000 24300 8500 261500 1/1/20 24300 8500 270000 Click if you would like to Show Work for this question: Open Show Work
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