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On January 1, 2021, a company acquires $360,000 of another company’s 9% bonds at a price...

On January 1, 2021, a company acquires $360,000 of another company’s 9% bonds at a price of $610,000. For the investor company, interest is received on January 1 of each year, and the bonds mature on January 1, 2031. The bonds are classified as held-to-maturity. What is the amount the investor company will record for Debt Investments on 1/1/2021?

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The amount the investor company will record for Debt Investments on 1/1/2021 is $610,000.

Amortised Cost : It is the cost of a security, plus or minus adjustments for any purchase discounts or premiums associated with the purchase of the security.

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