Question: Exercise 1 2 - 1 1 ( Algo ) Avallable - for - sale securttles; financial statement effects [ LO 1 2 - 1 ,

Exercise

12 - 11 (

Algo

)

Avallable

-

for

-

sale securttles; financial statement effects

[

12 - 1, 12 - 4]

Mills Corporation acquired as a long

-

term investment $

235

million of

8 %

bonds, dated July

1,

on July

1, 2024 .

Company management has classified the bonds as an available

-

for

-

sale investment. The market interest rate

(

Meld

)

was

6 %

for bonds of similar risk and maturity. Mills paid $

270

million for the bonds. The company will recelve interest semiannually on June

30

and December

31 .

As a result of changing market conditions, the falr value of the bonds at December

31, 2024,

was $

260

million.

Required:

Exercise

12 - 11 (

Algo

)

Avallable

-

for

-

sale securttles; financial statement effects

[

12 - 1, 12 - 4]

Mills Corporation acquired as a long

-

term investment $

235

million of

8 %

bonds, dated July

1,

on July

1, 2024 .

Company management has classified the bonds as an available

-

for

-

sale investment. The market interest rate

(

Meld

)

was

6 %

for bonds of similar risk and maturity. Mills paid $

270

million for the bonds. The company will recelve interest semiannually on June

30

and December

31 .

As a result of changing market conditions, the falr value of the bonds at December

31, 2024,

was $

260

million.

Required:

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