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11. Company Z issues a $250,000 6% bond due in 10 years. Interest is payable annually at year-end. The market rate is 4%. What is
11. Company Z issues a $250,000 6% bond due in 10 years. Interest is payable annually at year-end. The market rate is 4%. What is the value of the discount or premium associated with the bond at issuance?
$36,802 discount
$40,554 premium
$40,554 discount
$36,802 premium
12.
Which of the following is false?
Both are true
When billing a customer who is granted a trade discount, the list price is used.
Both are false
Trade discounts are recognized in the financial statements as Sales discounts
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