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Arlen and Betty Co. has outstanding a 7%, 10-year bond with a $100,000 face amount. The bond was originally sold to yield 6% annual interest
Arlen and Betty Co. has outstanding a 7%, 10-year bond with a $100,000 face amount. The bond was originally sold to yield 6% annual interest and make annual payments. The company uses the effective interest method to amortize bond premium. On 30, 2020, the carrying amount of the outstanding bond was \$105,000 . What amount of unamortized premium on bond should Arlen and Betty report in its June 30, 2021, balance sheet?
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