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On January 1 , 2 0 2 0 , Sheridan Company purchased $ 4 4 0 , 0 0 0 , 1 0 % bonds

On January 1,2020, Sheridan Company purchased $440,000,10% bonds of Aguirre Co. for $407,614. The bonds were purchased to yield 12% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1,2025. Sheridan Company uses the effective-interest method to amortize discount or premium. On January 1,2022, Sheridan Company sold the bonds for $409,094 after receiving
interest to meet its liquidity needs.
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