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Question 23 On November 1, 2021, Sandhill Company purchased 1000 of the $1000 face value, 9% bonds of Ramsey, Incorporated, for $1072500, which includes accrued

Question 23

On November 1, 2021, Sandhill Company purchased 1000 of the $1000 face value, 9% bonds of Ramsey, Incorporated, for $1072500, which includes accrued interest of $15800. The bonds, which mature on January 1, 2026, pay interest semiannually on March 1 and September 1. Assuming that Sandhill uses the straight-line method of amortization and that the bonds are appropriately classified as available-for-sale, the net carrying value of the bonds should be shown on Sandhill's December 31, 2021, balance sheet at

image text in transcribed

$1056700.

$1054432.

$1072500.

$1000000.

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