On July 1, 2008, Ingalls Company purchased $2,000,000 of Wilder Companys 8% bonds, due on July 1,
Question:
On July 1, 2008, Ingalls Company purchased $2,000,000 of Wilder Company’s 8% bonds, due on July 1, 2015. The bonds, which pay interest semiannually on January 1 and July 1, were purchased for $1,750,000 to yield 10%. Determine the amount of interest revenue Ingalls should report on its income statement for year ended December 31, 2008.
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Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
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