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On January 1, 2012, Plymouth Company purchases $100,000, 6% bonds at a price of 904 and a maturity date of January 1,2016. Interest is paid

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On January 1, 2012, Plymouth Company purchases $100,000, 6% bonds at a price of 904 and a maturity date of January 1,2016. Interest is paid semiannually, on January 1 and July 1. Plymouth Company has a calendar year end.Assuming Plymouth Company uses the straight-line amortization method to amortize bonds premium/discounts, the adjusting entry to amortize the bond investment on December 31, 2012 would include a: debit to Long-Term Investment in Bonds $2,400 debit to Long-Term Investment in Bonds $1,200 credit to Long-Term Investment in Bonds $2,400 credit to Long-Term Investment in Bonds $1,200 None of the above

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