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Ivanhoe Company purchased $1600000 of 10% bonds of Scott Company on January 1,2021 , paying $1504397. The bonds mature January 1, 2031; interest is payable
Ivanhoe Company purchased $1600000 of 10% bonds of Scott Company on January 1,2021 , paying $1504397. The bonds mature January 1, 2031; interest is payable each July 1 and January 1 . The discount of $95603 provides an effective yield of 11%. Ivanhoe Company uses the effective-interest method and plans to hold these bonds to maturity. For the year ended December 31, 2021, Ivanhoe Company should report interest revenue from the Scott Company bonds of: $165484. $169560. $165635. $160000
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