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On January 1, 2025, Indigo Company purchased 12% bonds having a maturity value of $490,000 for $419,567.77. The bonds provide the bondholders with a 10%
On January 1, 2025, Indigo Company purchased 12% bonds having a maturity value of $490,000 for $419,567.77. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2025, ad mature January 1, 2030, with interest received on January 1 of each year. indigo Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Prepare a bond amortization schedule.
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