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Pharoah Company purchased $1100000 of 10% bonds of Sheridan Company on January 1, 2025,...

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Accounting

Pharoah Company purchased $1100000 of 10% bonds of Sheridan Company on January 1, 2025, paying $1034273. The bonds mature on January 1, 2031; interest is payable each July 1 and January 1. The discount of $65727 provides an effective yield of 11%. Pharoah uses the effective-interest method and plans to hold these bonds to maturity. For the year ended December 31, 2025, Pharoah should report interest revenue from the Sheridan Company bonds of: O $113874. O $113770. O $116580. $110000.
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Pharoah Company purchased $1100000 of 10% bonds of Sheridan Company on January 1.2025, paying $1034273. The bonds mature on January 1, 2031; interest is payable each July 1 and January 1. The discount of $65727 provides an effective vield of 11% Pharoah uses the effective-interest method and plans to hold these bonds to maturity. For the year ended December 31,2025. Pharoah should report interest revenue from the Sheridan Company bonds of: $113874. $113770. $116580. $110000

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