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Gold Corp. uses the amortized cost method (effective interest method) when accounting for debt investments. During the year, it purchased $140,000 of 4-year, 8% bonds,
Gold Corp. uses the amortized cost method (effective interest method) when accounting for debt investments. During the year, it purchased $140,000 of 4-year, 8% bonds, when the market interest rate was 10%. 1. Calculate the price of the bond. Assume the bonds paid interest annually. 2. Record the purchase of the bonds on July 1,2021. 3. Record the accrual of interest on December 31, 2021. 4. Record the receipt of interest on July 1, 2022. 5. What is the bond's carrying value on December 31,2022
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