Sheridan Company purchased $1750000 of 10% bonds of Scott Company on January 1, 2021, paying $1645434. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of $104566 provides an effective yield of 11%. Sheridan Company uses the effective-interest method and plans to hold these bonds to maturity. For the year ended December 31, 2021, Sheridan Company should report interest revenue from the Scott Company bonds of: O $175000. $185457. O $181163. O $180998.

Sheridan Company purchased $1750000 of 10% bonds of Scott Company on January 1, 2021, paying $1645434. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of $104566 provides an effective yield of 11%. Sheridan Company uses the effective-interest method and plans to hold these bonds to maturity. For the year ended December 31, 2021, Sheridan Company should report interest revenue from the Scott Company bonds of: O $175000. $185457. O $181163. O $180998.

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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