5. On October 1, 2006, Ming Co. purchased 300 of the $1,000 face value, 8% bonds...

 

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5. On October 1, 2006, Ming Co. purchased 300 of the $1,000 face value, 8% bonds of Loy, Ic., for $351,000, including accrued interest of $6,000. The bonds, which mature on January 1, 2013, pay interest semiannually on January 1 and July 1. Ming used the straight-line method of amortization and appropriately recorded the bonds as available- for-sale. On Ming's December 31, 2007 balance sheet, the carrying value of the bonds is $342,000. $345,000. $336,000. $340,800. 5. On October 1, 2006, Ming Co. purchased 300 of the $1,000 face value, 8% bonds of Loy, Ic., for $351,000, including accrued interest of $6,000. The bonds, which mature on January 1, 2013, pay interest semiannually on January 1 and July 1. Ming used the straight-line method of amortization and appropriately recorded the bonds as available- for-sale. On Ming's December 31, 2007 balance sheet, the carrying value of the bonds is $342,000. $345,000. $336,000. $340,800.

Answer rating: 100% (QA)

Purchase price including interest 351000 Less accrued inter... View the full answer