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On July 1 , 2 0 2 3 , Martinez Aggregates Ltd . purchased 7 % bonds with a maturity value of $ 1 0

On July 1,2023, Martinez Aggregates Ltd. purchased 7% bonds with a maturity value of $100,000 for $103,510. The bonds provide
the bondholders with a 6% yield. The bonds mature four years later, on July 1,2027, with interest receivable June 30 and December
31 of each year. Martinez uses the effective interest method to allocate unamortized discount or premium. The bonds are accounted
for using the FV-OCI model with recycling. Martinez has a calendar year end. The fair value of the bonds at December 31,2023 and
2024, was $103,320 and $102,134, respectively. Assume fair value adjustments are recorded at year end only. Immediately after
collecting interest on December 31,2024, the bonds were sold for $102,134.
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