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Patty Company purchased $400,000 of 10% bonds of Scott Co. on January 1, 2019, paying $376,100. The bonds mature January 1, 2029; interest is payable

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Patty Company purchased $400,000 of 10% bonds of Scott Co. on January 1, 2019, paying $376,100. The bonds mature January 1, 2029; interest is payable each July 1 and January 1. The discount of $23,900 provides an effective yield of 12%. Patty Company uses the effective-interest method and holds these bonds for collection. On July 1, 2019, Patty Company should increase its Debt Investments account for the Scott Co. bonds by: Select one: A. $2,566.00 O B. $5,132.00 C. $1,371.00 O D. $4,000.00

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