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On November 1, 2021, Cullumber Company purchased Vaughn, Inc., 10-year, 10%, bonds with a face value of $810000, for $730000. An additional $25000 was
On November 1, 2021, Cullumber Company purchased Vaughn, Inc., 10-year, 10%, bonds with a face value of $810000, for $730000. An additional $25000 was paid for the accrued interest. Interest is payable semiannually on January 1 and July 1. The bonds mature on July 1, 2028. Cullumber uses the straight-line method of amortization. Ignoring income taxes, the amount reported in Cullumber's 2021 income statement as a result of Cullumber's available-for-sale investment in Vaughn was $16875. O $15500. O $17500. O $14125.
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