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At what amount will the company report its investment

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Question - A Technology Company, purchased as a long-term investment $80 million of 8% bonds, dated January1, on January 1, 2021. Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $66 million. Interest is received semiannually on June 30 and December 31 Due to changing marker conditions, the fair value of the bonds at December 31, 202 was $70 million.

1: At what amount will the company report its investment in December 31, 2021 balance sheet?

2: How would the company 2021 statement of cash flows be affected by this investment?

Reference no: EM132668125

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