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A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% (market rate) on January 1, 2017. Interest is paid on June 30 and December 31.
A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% (market rate) on January 1, 2017. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,145. Using effective-interest method, what will the carrying value of the bonds be on the December 31, 2017 balance sheet? a. $19,612,643 b. $20,000,000 $19,625,125 d. $19,608,310 20,000,000 *0878)+(201000,000 -19604 My Using effective-interest method, how much interest expense will be recognized in 2017? a. $780,000 b. $1,560,000 20 c. $1,568,498 d. $1,568,332 c. none of the above Stone, Inc. issued bonds with a maturity amount of $200,000 and a maturity ten years from date o issue. If the bonds were issued at a premium, this indicates that
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