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On January 1, 2017, Bridgeport Corp. acquires $328,000 of Spider Products, Inc. 9% bonds at a price of $304,366. The interest is payable each December
On January 1, 2017, Bridgeport Corp. acquires $328,000 of Spider Products, Inc. 9% bonds at a price of $304,366. The interest is payable each December 31, and the bonds mature on December 31, 2019. The investment will provide Bridgeport Corp. with a 12% yield. Bridgeport Corp. applies IFRS and accounts for this investment using the amortizec cost model. (a) Prepare a three-year bond amortization schedule. (Round answers to 0 decimal places, e.g. 5,275.) Schedule of Interest Income and Bond Discount Amortization Effective Interest Method Cash Received Interest Income Bond Discount Amortization Carrying Amount of Bonds Date 01/01/17 $ 12/31/17 $ $ $ 12/31/18 12/31/19 SHOW LIST OF ACCOUNTS LINK TO TEXT
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