1. Using the following information, prepare journal entries for the year 2023 and indicate how ABC...

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1. Using the following information, prepare journal entries for the year 2023 and indicate how ABC Corp. should report its investment in its year-end financial statements: the investment is considered Held to maturity. On January 1, 2023, XYZ issued $6,000,000 of 8% bonds, due on January 1, 2031. The bonds, which pay interest semiannually on January 1 and July 1, were purchased by ABC Corp. for $5,349,725 to yield 10%. The fair value on December 31, 2023, is $5,340,000. 1. Using the following information, prepare journal entries for the year 2023 and indicate how ABC Corp. should report its investment in its year-end financial statements: the investment is considered Held to maturity. On January 1, 2023, XYZ issued $6,000,000 of 8% bonds, due on January 1, 2031. The bonds, which pay interest semiannually on January 1 and July 1, were purchased by ABC Corp. for $5,349,725 to yield 10%. The fair value on December 31, 2023, is $5,340,000.