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On January 1, 2020, Ayayai Company acquires $300,000 of Spiderman Products, Inc., 9% bonds at a price of $271,666. Interest is received on January 1
On January 1, 2020, Ayayai Company acquires $300,000 of Spiderman Products, Inc., 9\% bonds at a price of $271,666. Interest is received on January 1 of each year. and the bonds mature on January 1, 2023. The investment will provide Ayayai Company a 13\% vield. The bonds are classified as held-to-maturity. (a) Your answer is correct. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to 0 decimal places, eg. 2,500.) Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the effective-interest method. (Round answers to 0 decimal places, e.g. 2,500.)
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