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which includes accrued interest of $9,000. The bonds, which mature
on January 1, 2012, pay interest semiannually on March 1 and
September 1. Assuming that Little uses the straight-line method of
amortization and that the bonds are appropriately classified as
available-for-sale, what would the net carrying value of the bonds be
shown as on Little's December 31, 2007, balance sheet?
26) On October 1, 2007, Lyman Co. purchased to hold to maturity,
200 of the $1,000 face value, 9% bonds for $208,000. An additional
$6,000 was paid for accrued interest. Interest is paid semiannually
on December 1 and June 1 and the bonds mature on December 1,
2011. Lyman uses straight-line amortization. Ignoring income taxes,
what was the amount reported in Lyman's 2007 income statement
from this investment?
27) On October 1, 2007, Porter Co. purchased to hold to maturity
1,000 of the $1,000 face value, 9% bonds for $990,000 which
includes $15,000 accrued interest. The bonds, which mature on
February 1, 2016, pay interest semiannually on February 1 and
August 1. Porter uses the straight-line method of amortization. The
bonds should be reported in the December 31, 2007 balance sheet at
a carrying what value?