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On January 1,2023, Martinez Corporation purchased 580 of $1000 face value, 8% bonds of Cullumber Company, for $511000, to yield 10%. The bonds, which mature
On January 1,2023, Martinez Corporation purchased 580 of $1000 face value, 8% bonds of Cullumber Company, for $511000, to yield 10\%. The bonds, which mature on January 1, 2028, pay interest semi-annually on January 1 and July 1 . Assuming that Martinez uses the straight-line method of amortization and that the bonds are accounted for under the amortized cost method, the net carrying value of the bonds should be shown on Martinez's December 31, 2023, statement of financial position at $536875.$524800.$528250.$580000.
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