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On November 1, 2018, Crane Company purchased 1000 of the $1000 face value, 9% bonds of Ramsey, Incorporated, for $1080000, which includes accrued interest of
On November 1, 2018, Crane Company purchased 1000 of the $1000 face value, 9% bonds of Ramsey, Incorporated, for $1080000, which includes accrued interest of $16100. The bonds, which mature on January 1, 2023, pay interest semiannually on March 1 and September 1. Assuming that Crane uses the straight-line method of amortization and that the bonds are appropriately classified as available-for-sale, the net carrying value of the bonds should be shown on Crane's December 31, 2018, balance sheet at
| $1000000. |
| $1063900. |
| $1080000. |
| $1061344. |
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