Question: On April 1 , 2 0 2 3 , Chitauri Corp. purchased 5 % , $ 1 0 0 , 0 0 0 face value

On April 1,2023, Chitauri Corp. purchased 5%, $100,000 face value bond for $92,038 plus accrued interest. The present value of the bond at Jan 1,2023, was $ 91,683. Interest is paid on July 1 and January 1 and the bonds mature on July 1,2028. Chitauri uses the amortized cost model to account for this investment and intends to hold the bonds to maturity. Chitauri Corp. follows ASPE.

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