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JOHNSON HAS THE FOLLOWING DATA REGARDING AN AVAILABLE FOR SALE DEBT INVESTMENT: BOND FACE 350,000 PURCHASE PRICE 371,983 PURCHASE DATE 7/1/18 STATED INTEREST RATE 7.00%
| JOHNSON HAS THE FOLLOWING DATA REGARDING AN AVAILABLE FOR SALE DEBT INVESTMENT: | ||
| BOND FACE | 350,000 | |
| PURCHASE PRICE | 371,983 | |
| PURCHASE DATE | 7/1/18 | |
| STATED INTEREST RATE | 7.00% | (PAID JUNE 30TH AND DECEMBER 31ST) |
| EFFECTIVE INTEREST RATE | 6.00% | |
| TERM | 8 | YEARS |
| FAIR VALUE AT DECEMBER 31ST, 2018 | 362,000 | |
| FAIR VALUE WHEN SOLD ON JANUARY 5TH, 2019 | 358,000 | |
REQUIRED: WHAT IS THE REALIZED LOSS WHEN SOLD ON JANUARY 5TH.
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Management Accounting Information for Decision-Making and Strategy Execution
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
6th Edition
137024975, 978-0137024971
