Menke uses straight-line amortization. ignoring income, Ask an Expert

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On October 1, 2010, Menke Co. purchased to hold to maturity, 200, $1,000, 9% bonds for $208,000. An additional $6,000 was paid for accrued interest. Interest is paid semiannually on December 1 and June 1 and the bonds mature on December 1, 2014. Menke uses straight-line amortization. Ignoring income taxes, the amount reported in Menke's 2010 income statement from this investment should be $4,500.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9419404

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