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On July 1, 2021, Spencer Co. paid $1,166,000 for 10%, 20-year bonds with a face amount of $1 million. Interest is paid on December 31
On July 1, 2021, Spencer Co. paid $1,166,000 for 10%, 20-year bonds with a face amount of $1 million. Interest is paid on December 31 and June 30. The bonds were purchased to yield 8%. Spencer uses the effective interest rate method to recognize interest income from this investment. The bonds are properly classified as held-to-maturity. What should be reported as the carrying amount of the bonds in Spencer's December 31, 2021, balance sheet?
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