On November 1, 2021, Sheridan Company purchased Pina, Inc., 10-year, 9%, bonds with a face value of $ 850000, for $ 770000. An additional $ 29000 was paid for the accrued interest. Interest is payable semiannually on January 1 and July 1. The bonds mature on July 1, 2028. Sheridan uses the straight-line method of amortization. Ignoring income taxes, the amount reported in Sheridan's 2021 income statement as a result of Sheridan's available-for-sale investment in Pina was $ 7975. $ 10525. $ 11250. $ 9250.
On November 1, 2021, Sheridan Company purchased Pina, Inc., 10-year, 9%, bonds with a face value of $ 850000, for $ 770000. An additional $ 29000 was paid for the accrued interest. Interest is payable semiannually on January 1 and July 1. The bonds mature on July 1, 2028. Sheridan uses the straight-line method of amortization. Ignoring income taxes, the amount reported in Sheridan's 2021 income statement as a result of Sheridan's available-for-sale investment in Pina was $ 7975. $ 10525. $ 11250. $ 9250.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 3MC: On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9%...
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On November 1, 2021, Sheridan Company purchased Pina, Inc., 10-year, 9%, bonds with a face value of $ 850000, for $ 770000. An additional $ 29000 was paid for the accrued interest. Interest is payable semiannually on January 1 and July 1. The bonds mature on July 1, 2028. Sheridan uses the straight-line method of amortization. Ignoring income taxes, the amount reported in Sheridan's 2021 income statement as a result of Sheridan's available-for-sale investment in Pina was
$ 7975.
$ 10525.
$ 11250.
$ 9250.
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