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On October 1, 2023, Sarasota Corp. purchased 820, $1000, 9% bonds for $783000, which included $12300 accrued interest. The bonds, which mature on February
On October 1, 2023, Sarasota Corp. purchased 820, $1000, 9% bonds for $783000, which included $12300 accrued interest. The bonds, which mature on February 1, 2032, pay interest semi-annually on February 1 and August 1. The bonds will be held to maturity. Sarasota uses the straight-line method of amortization. The bonds, which are accounted for under the amortized cost model, should be reported in the December 31, 2023 balance sheet at a carrying value of $770700. O $783493. $783000. O $772179. On January 1, 2023, Bramble Co. purchased a 5-year, 9% bond with a face value of $220000. The purchase price of $195711 was consistent with a 12% yield. Interest is payable semi-annually on January 1 and July 1. The bonds mature on January 1, 2028. The amortized cost of the bond on the maturity date is O $206800. $215417. $196628. O $220000. An investor who owns 15% of an entity's voting shares can O potentially have influence over the investee if the other outstanding shares are widely held. O be assumed to be using the cost model. O always be assumed to have little or no influence over the investee. O be assumed to always use the equity method.
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