On January 1,2020 , Hole Company purchased 600 of $1,000 face value, 8% bonds of...
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On January 1,2020 , Hole Company purchased 600 of $1,000 face value, 8% bonds of Lid Corp., for $553,670, to yield 10%. The bonds which mature on January 1, 2025, pay interest semiannually on January 1 and July 1 . Assuming that Hole uses the straight-line method of amortization and that the bonds are accounted for under the amortized cost method, the net carrying value of the bonds should be shown on Hole's December 31, 2020, statement of financial position at $553,670$600,000$557,351$562,936
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