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On July 1, 2021, Jordan Company purchased 10 -year, $1,000,000,10% bonds that pay interest on July 1 January 1. The bonds are sold to yield
On July 1, 2021, Jordan Company purchased 10 -year, $1,000,000,10% bonds that pay interest on July 1 January 1. The bonds are sold to yield 8%. Assume, the bonds were purchased for $1,200,000. Fair market value of the bonds on December 31,2021 was $1,199,000. If the debt investment is classified as available for sale, it will be reported on December 31,2021 at A) $1,000,000 B) $1,200,000 C) $1,199,000 D) $1,198,000 E) None of the above
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