On October 1,2023, Sarasota Corp. purchased 820,$1000,9% bonds for $783000, which included $12300 accrued interest. The bonds, which mature on February 1, 2032, pay interest semi-annually on February 1 and August 1. The bonds will be held to maturity. Sarasota uses the straight-line method of amortization. The bonds, which are accounted for under the amortized cost model, should be reported in the December 31,2023 balance sheet at a carrying value of $770700.
$783493.
$783000.
$772179.
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On January 1, 2023, Bramble Co. purchased a 5-year, 9% bond with a face value of $220000. The purchase price of $195711 was consistent with a 12% yield. Interest is payable semi-annually on January 1 and July 1 . The bonds mature on January 1,2028 . The amortized cost of the bond on the maturity date is $206800.
$215417.
$196628.
$220000
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An investor who owns 15% of an entity's voting shares can potentially have influence over the investee if the other outstanding shares are widely held. be assumed to be using the cost model. always be assumed to have little or no influence over the investee. be assumed to always use the equity method.