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On January 3, 2017, Pecan Company acquires $100,000 of Pie Company's 10-year, 10% bonds at a price of $103,220 to yield 9.5%. Interest is payable

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On January 3, 2017, Pecan Company acquires $100,000 of Pie Company's 10-year, 10% bonds at a price of $103,220 to yield 9.5%. Interest is payable each June 30 and December 31. The bonds are classified as held-to-maturity. Assuming that Pecan Company uses the effective interest method, what is the amount of interest revenue that would be recognized in 2018 related to these bonds? [5 points) 9782 A Assuming that Pecan Company uses the straight-line method, what is the amount of premium amortization that would be recognized in 2019 related to these bonds? (3 points)

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