On July 1, 2020, Sandhill Company purchased $3,860,000 of Duggen Company’s 8% bonds, due on July...

On July 1, 2020, Sandhill Company purchased $3,860,000 of Duggen Company’s 8% bonds, due on July 1, 2027. The bonds, which pay interest semiannually on January 1 and July 1, were purchased for $3,340,000 to yield 10%. These bonds are classified as available-for sale and they have a fair value at December 31, 2020, of $3,444,400, prepare the journal entry (if any) at December 31, 2020, to record this transaction.

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ekkarill92 answered 1 year ago

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