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Business, 26.03.2021 03:30 ella3714

Wildhorse Company purchased $1350000 of 11% bonds of Scott Company on January 1, 2021, paying $1272578. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of $77422 provides an effective yield of 12%. Wildhorse Company uses the effective-interest method and plans to hold these bonds to maturity. For the year ended December 31, 2021, Wildhorse Company should report interest revenue from the Scott Company bonds of:

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Wildhorse Company purchased $1350000 of 11% bonds of Scott Company on January 1, 2021, paying $12725...
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