On July 2, 19X2, Wynn, Inc., purchased as an available-for-sale security a $1,000,000 face value Kean Co. 8% bond for $910,000 plus accrued interest to yield 10%. The bonds mature on January 1, 19X9, and pay interest annually on January 1.
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The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,450,000, and the December 31, 2016, balance sheet showed long-term debt of $1,680,000. The 2016 income statement showed an interest expense of $99,000.
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