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A company issued a 5-year bond with a face value of $100,000 and a stated interest rate of 8%, payable annually. Calculate the annual interest

A company issued a 5-year bond with a face value of $100,000 and a stated interest rate of 8%, payable annually. Calculate the annual interest expense, interest paid, and ending bond carrying value for each year, assuming the effective interest method.

Year

Beginning Carrying Value

Interest Expense

Interest Paid

Ending Carrying Value

1

$100,000




2





3





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