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10. Marigold Corporation purchased $61,400 of 7-year, 7% bonds of Hu Inc. for $58,157 to an 8% return. It classified the purchase as an amortized cost method investment. The bonds interest semi-annually. Marigold applies ASPE and has chosen the straight-line method of disce amortization. The bonds, after two interest periods, should be reported in the balance sheet carrying value of a) $58,520. b) $58,570.

10. Marigold Corporation purchased $61,400 of 7-year, 7% bonds of Hu Inc. for $58,157 to an 8% return. It classified the purchase as an amortized cost method investment. The bonds interest semi-annually. Marigold applies ASPE and has chosen the straight-line method of disce amortization. The bonds, after two interest periods, should be reported in the balance sheet carrying value of a) $58,520. b) $58,570.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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10. Marigold Corporation purchased $61,400 of 7-year, 7% bonds of Hu Inc. for $58,157 to y an 8% return. It classified the purchase as an amortized cost method investment. The bonds interest semi-annually. Marigold applies ASPE and has chosen the straight-line method of disco amortization. The bonds, after two interest periods, should be reported in the balance sheet a carrying value of a) $58,520. b) $58,570. c) $58,620. d) $58,670. 0.008
Transcribed Image Text:10. Marigold Corporation purchased $61,400 of 7-year, 7% bonds of Hu Inc. for $58,157 to y an 8% return. It classified the purchase as an amortized cost method investment. The bonds interest semi-annually. Marigold applies ASPE and has chosen the straight-line method of disco amortization. The bonds, after two interest periods, should be reported in the balance sheet a carrying value of a) $58,520. b) $58,570. c) $58,620. d) $58,670. 0.008
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