Problemon july 1 2017 pronghorn company purchased 4180000, Ask an Expert

Accounting

Problem

On July 1, 2017, Pronghorn Company purchased $4,180,000 of Duggen Company's 8% bonds, due on July 1, 2024. The bonds, which pay interest semiannually on January 1 and July 1, were purchased for $3,710,000 to yield 10%. Determine the amount of interest revenue Pronghorn should report on its income statement for the year ended December 31, 2017.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92719594

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