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Answer:
Dr Investment in bonds $755,000
Cr discount on bonds investment $80,000
Cr cash $675,000
December 31:
Dr cash($755,000*4%*6/12) $15,100
Dr discount on bonds investment(difference) $1775
Cr bond interest revenue($675,000*5%*6/12) $16,875
Explanation:
The purchase of the bonds at $675,000 while the face value was $755,000 meant that the bonds were acquired at a discount of $80,000($755,000-$675,000),as a result the appropriate entries would be to credit cash with $675,000 paid as well as the discount on investment with $80,000 while the investment in bonds account is debited with face value of $755,000
The answer is <span>Customer value-based pricing
</span><span>Customer value-based pricing is a form of pricing that based on consumer's perceived value of a certain product/services rather than historical cost.
</span>the productss that used this type of pricing usually a tertiary products such as jewelry or rare collectibles.