Chee purchases tan inc bonds for 108000 on january 2 2011, Ask an Expert

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Chee purchases Tan, Inc. bonds for $108,000 on January 2, 2011. The face value of the bonds is $100,000, the maturity date is December 31, 2015, and the annual interest rate is 6%. Chee will amortize the premium only if he is required to do so. Chee sells the bonds on July 1, 2013, for for $106,000.

a. Determine the interest income Chee should report for 2011.
b. Calculate Chee's recognized gain or loss on the sale of the bonds in 2013.Calculate Chee's recognized gain or loss on the sale of the bonds in 2013.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9969523

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