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On November 1, 2021, Pharoah Company purchased 1000 of the $1000 face value, 9% bonds of Ramsey, Incorporated, for $1032500, which includes accrued interest
On November 1, 2021, Pharoah Company purchased 1000 of the $1000 face value, 9% bonds of Ramsey, Incorporated, for $1032500, which includes accrued interest of $14200. The bonds, which mature on January 1, 2026, pay interest semiannually on March 1 and September 1. Assuming that Pharoah uses the straight-line method of amortization and that the bonds are appropriately classified as held-to-maturity, the carrying value of the bonds should be shown on Pharoah's December 31, 2021, balance sheet at O $1000000. O $1032500. O $1017568. O $1018300.
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