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On January 1, 2016, Weaver Company purchased as held-to-maturity debt securities $500,000 face value of Park Corporation’s 8% bonds for $456,200. The bonds were purchased to yield 10% interest and pay interest annually. The bonds mature on January 1, 2021. Weaver uses the effective interest method of amortization. What amount should Weaver report on its December 31, 2016,
- a. $450,580
- b. $456,200
- c. $461,820
- d. $466,200
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Intermediate Accounting: Reporting and Analysis, 2017 Update
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