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Interest for bond (held-to-maturity) investments On February 1, Hansen Company purchased $138,000 of 6%,15-year Knight Company bonds at their face amount plus 1 month's accrued

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Interest for bond (held-to-maturity) investments On February 1, Hansen Company purchased $138,000 of 6%,15-year Knight Company bonds at their face amount plus 1 month's accrued interest. The bonds pay interest on January 1 and July 1. On October 1, Hansen Company sold s49,200 of the Knight Company bonds acquired on February 1, plus 3 months' accrued interest, On December 31,3 months' interest was accrued for the remaining bonds. Determine the interest eamed by Hansen Company on Knight Company bonds for the year. x Feedthack F Check iny Won Three interest components make up the interest earned in this exercise. Feb. 1 to July it Bond purchase amount x interest x:[(6 months - 1 months accrued at purchase) ( 12 months ) July 1 to Oct, 1: 5old bond amount x interest x ( 3 months/ 12 months) July 1 to Dec, 31: [(Original bond purchase less sold bonds) interest (6 months / 12 months)]

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