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On May 1, 2020, Franklin Inc. acquired $120,000 (face value) 10% bonds of Machu Corporation. The current market rate of interest is 8%. The bonds

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On May 1, 2020, Franklin Inc. acquired $120,000 (face value) 10% bonds of Machu Corporation. The current market rate of interest is 8%. The bonds mature on April 30, 2023, with interest payable each October 31 and April 30. The bonds will be held to maturity. The Investment in bond is accounted for using the amortized cost model. To the nearest dollar, what is the amount paid for the Investment in Bonds? Answer: The correct answer is: 126291

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