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A $100,000 bond payable is issued on June 1, Year One for 104. The bond pays annual cash interest of 12 percent per year with
A $100,000 bond payable is issued on June 1, Year One for 104. The bond pays annual cash interest of 12 percent per year with payments every June 1 and December 1. The bond was sold to yield an effective interest rate of 10 percent per year. If the effective rate method is being used, what amount (rounded) should be reported for the liability as of December 31, Year One?
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