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A company issues 5% loan notes at their nominal value of $20,000 with an effective rate of 5%. The loan notes are repayable at par

A company issues 5% loan notes at their nominal value of $20,000 with an effective rate of 5%. The loan notes are repayable at par after 4 years. What amount will be recorded as a financial liability when the loan notes are issued? What amounts will be shown in the statement of profit or loss and statement of financial position for years 14?

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