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On January 1, 2017, Swifty Corp. acquires $314,000 of Spider Products, Inc. 9% bonds at a price of $291,375. The interest is payable each December
On January 1, 2017, Swifty Corp. acquires $314,000 of Spider Products, Inc. 9% bonds at a price of $291,375. The interest is payable each December 31, and the bonds mature on December 31, 2019. The investment will provide Swifty Corp. with a 12% yield. Swifty Corp. applies IFRS and accounts for this investment using the amortized cost model. (a) Prepare a three-year bond amortization schedule. (Round answers to o decimal places, e.g. 5,275.) Schedule of Interest Income and Bond Discount Amortization Effective Interest Method Cash Interest Bond Discount Received Income Amortization Carrying Amount of Bonds Date 01/01/17 $ 12/31/17 $ $ $ 12/31/18 12/31/19
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