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Stillworth Company purchased as a short-term investment $500,000 of 6% bonds, dated July 1, on July 1, 2021. Management intends to include the investment in
Stillworth Company purchased as a short-term investment $500,000 of 6% bonds, dated July 1, on July 1, 2021. Management intends to include the investment in a short-term, active trading portfolio. For bonds of similar risk and maturity the market yield was 8%. The price paid for the bonds was $401.000. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2021, was $410,000 Answer the following questions: (Do not add dollar sign; do not add comma by yourself to your amount round the answer to the whole number, use minus sign if the amount is negative) 1. At what amount will Stillworth report this investment in the December 31, 2021 balance sheet? 2. What is the amount related to the bond investment that Stillworth will report in its income statement for the year ended December 3 1, 2021? (Ignore income taxes.) 3. What is the amount related to the bond investment that Stillworth will report in its statement of cash flows for the year ended December 31, 2021? Indicate the category in which to classify cash flows. activities (amount) activities amount)
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