Question
On January 1, 2022, ABC Inc. purchased as a long-term investment $100,000 of 8% bonds. On the purchase day, the market rate was 12%. Payment
On January 1, 2022, ABC Inc. purchased as a long-term investment $100,000 of 8% bonds. On the purchase day, the market rate was 12%. Payment Frequency is semi-annual (June 30 and December 31). The bonds mature on December 31, 2024.
The market value of the bonds at the end of 2022 was $96,000. On July 1, 2023, ABC sold the bonds at $95,000.
Assume that ABC classified the bonds as held-to-maturity securities. What was the net book value of the investment in bonds reported in the balance sheet as of Dec 31, 2022?
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Fraud Auditing And Forensic Accounting
Authors: Tommie W Singleton, Aaron J Singleton, G Jack Bologna, Robert J Lindquist
4th Edition
047056413X, 9780470564134
