On January 31, 2020, Combinor Company issued $900,000 face amount of 9%, 10-year bonds due January 31,
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On January 31, 2020, Combinor Company issued $900,000 face amount of 9%, 10-year bonds due January 31, 2030, with a present value of $965,423 at a 8% yield, to Combinee Company for its net assets. The journal entry for the merger includes the following except:
a.
Credit to bonds payable $900,000.
b.
Credit to discount on bonds payable $65,423.
c.
Credit to premium on bonds payable $65,423.
d.
Debit to investment in combinee net assets $965,423.
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