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On August 1, 2021, Bustive Co. purchased to hold for collection, $1,000,000, 9% bonds for $940,000 (a 10% effective interest rate). The bonds, which mature
On August 1, 2021, Bustive Co. purchased to hold for collection, $1,000,000, 9% bonds for $940,000 (a 10% effective interest rate). The bonds, which mature on August 1, 2031, pay interest semiannually on February 1 and August 1. Bustive Co. uses the effective interest method of amortization. The bonds should be reported in the December 31, 2021 statement of financial position at a carrying value of Select one: $940,000. O $941,667 $942,000 $943,333
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