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Amortization of Premium Stacy Company issued five-year, 12% bonds with a face value of $25,000 on January 1, 2016. Interest is paid annually on December
Amortization of Premium
Stacy Company issued five-year, 12% bonds with a face value of $25,000 on January 1, 2016. Interest is paid annually on December 31. The market rate of interest of January 1, 2016, is 10% and the proceeds from the bond issuance equal $26,895.
What is the total interest expense over the life of the bonds? cash interest payment? premium amortization?
Interest expense$
Cash interest payment$
Premium amortized$
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