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What amount should be reported as interest income

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Question 1: On April 1, 2020, BANANA Company purchased 9% bonds with a face value of $4,000,000 for $3,756,000 to yield 10%. The bonds are dated January 1, 2020, mature on December 31, 2029, and pay interest annually on December 31. The bonds are measured at amortized cost. What amount should be reported as interest income for 2020? Solution must be in good accounting form.

Reference no: EM132858957

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