Question: Jensen Laboratories purchased four $ 2 0 , 0 0 0 bonds on July 1 , 2 0 1 8 , to yield 6 %

Jensen Laboratories purchased four $20,000 bonds on July 1,2018, to yield 6%. The stated interest rate on the bonds is 7%. Interest is paid quarterly on March 31, June 30, September 30, and December 31. The bonds mature on June 30,2023. The bonds are classified as available-for-sale securities. The fair values of the bonds on December 31,2018, is $82,500.
What is the purchase price of the bonds on April 1,2018? What is the amortized cost of the bonds on December 31,2018? What is the amount of the investment recognized on Jensens balance sheet on December 31,2018?

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