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Pierce Company issued 11% bonds, dated January 1, with a face amount of $800,000 on January 1, 2009. The bonds sold for $739,816 and mature

Pierce Company issued 11% bonds, dated January 1, with a face amount of $800,000 on January 1, 2009. The bonds sold for $739,816 and mature in 2028 (20 years). For bonds of similar risk and maturity the market yield was 12%. Interest is paid semiannually on June 30 and December 31. Pierce determines interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2009, the fair value of the bonds was $730,000. Pierce's earnings for the year will include? 1. What is the amount related to the bonds that Alpha will report in its balance sheet at December 31, 2021? 2. What is the amount related to the bonds that Alpha will report in its income statement for the year ended December 31, 2021? (Ignore income taxes.) 3. What is the amount related to the bonds that Alpha will report in its statement of cash flows for the year ended December 31, 2021

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