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Chapman Company issued $400,000 of 20 year, 6 percent bonds on January 1, 2013. The bonds were issued at face value. Interest is payable in cash on December 31 of each year. Chapman immediately invested the proceeds from the bond issue in land. The land was leased for an annual $60,000 of cash revenue, which was collected on December 31 of each year, beginning December 31, 2013
Required
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