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Business, 17.04.2020 01:53 mayavue99251

On July 1, 2020, RAX Inc. purchased $100,000 of Shelf Corp. bonds at a discount rate of $95,000. The Shelf bonds have a stated 6% interest rate but were purchased when the market interest rate was 7%. The bonds pay interest semi-annually on June 30 and December 31 of each year. RAX accounts for the bonds as a held-to-maturity (HTM) investment and uses the effective interest method. How much Interest Revenue should RAX record for the December 31, 2020 journal entry?

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On July 1, 2020, RAX Inc. purchased $100,000 of Shelf Corp. bonds at a discount rate of $95,000. The...
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