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Which the entry to record the investment includes

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Question 1: Pippen Co. purchased ten-year, 10% bonds that pay interest semiannually. The bonds are sold to  yield 8%. One step in calculating the issue price of the bonds is to multiply the principal by the  table value for

a. 10 periods and 10% from the present value of 1 table.
b. 10 periods and 8% from the present value of 1 table.
c. 20 periods and 5% from the present value of 1 table.
d. 20 periods and 4% from the present value of 1 table.

Question 2: Solo Co. purchased ?300,000 bonds for ?315,000. The securities are to be held until maturity to  collect the contractual cash flows. The entry to record the investment includes

a. a debit to Held-for-Trading Securities at ?300,000.
b. a credit to Premium on Investments of ?15,000.
c. a debit to Investment in bonds measured at amortized cost for ?315,000.
d. none of these.

Reference no: EM132784243

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