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On August 1, 2016, Renfro Co. purchased to hold for collection, 1,000, $1,000, 9% bonds for $940,000 (a 10% effective interest rate). The bonds, which
On August 1, 2016, Renfro Co. purchased to hold for collection, 1,000, $1,000, 9% bonds for $940,000 (a 10% effective interest rate). The bonds, which mature on August 1, 2026, pay interest semiannually on February 1 and August 1. Renfro uses the effective interest method of amortization. The bonds should be reported in the December 31, 2016 statement of financial position at a carrying value of Select one: A. 941667 B. 942000 C. 940000 D. 943333
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