Question 14.7: Assume that the $12,000 investment at a discount of $240 is ...

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Assume that the $12,000 investment at a discount of $240 is to be held for four years. Either at each interest collection date or at the end of the fiscal year, the discount should be amortized. Amortization always affects interest earned on investments, and the discount or premium on investments is, as a result, amortized through the revenue from the interest account

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