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Arya Co. purchased bonds on 1 January 2017 for 104.212,36$. The bond has a nominal value of 100.000$ and nominal interest rate of %7. The interest payments are annually made at 31 December. The bond provides %6 interest for the investors.
Question a) Assume that bond is classified as financial instruments measured at amortized cost. Make the necessary journal entries until 31.12.2018.
Question b) Assume that bond is classified as financial instruments measured at fair value through profit or loss. The fair value on the bond is 103.000$ on 31.12.2018. Make the necessary journal entries at this date
Muggsy Bogues Company purchased equipment for $306,650 on October 1, 2014. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $22,080. Compute depreciation expense under each of the following methods. Bogues ..
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