Question: On January 1 , 2 0 2 5 , Oak Ltd . paid $ 4 0 6 , 5 9 3 . 3 0 for

On January 1,2025, Oak Ltd. paid $406,593.30 for 8% bonds with a maturity value of $375,000. The purchase price was based on a
market interest rate of 6%. The bonds were issued by Jared Inc. on January 1,2025, and mature on January 1,2030, with interest
receivable on December 31 of each year. Oak classifies the bonds as a debt investment held to earn interest income. Oak Ltd. has a
calendar year end.
On January 1,2025, Oak Ltd. paid $406,593.30 for 8% bonds with

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