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At the beginning of 2017, Brownstein Corporation issued 10% bonds with a face value of $6,000,000. These bonds mature in the five years, and interest

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At the beginning of 2017, Brownstein Corporation issued 10% bonds with a face value of $6,000,000. These bonds mature in the five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $5, 558, 400 to yield 12%. Brownstein uses a calendar-year reporting period. Using the effective-interest method of amortization, what amount of interest expense should be reported for 2017? (Round your answer to the nearest dollar.) a. $688, 320 b. $669, 018 c. $667,000 d. $665,000 On January 1, Metroline Inc. issued $5,000,000, 9% bonds for $4, 695,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Metroline uses the effective-interest method of amortizing bond discount. At the end of the first year, Metroline should report unamortized bond discount of a. $274, 500 b. $285, 500. c. $258, 050. d $255,000. On January 1, Rodriguez Inc. issued $6,000,000, 11% bonds for $6, 390,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Rodriguez uses the effective-interest method of amortizing bond premium. At the end of the first year, Rodriguez should report unamortized bond premium of: a. $370, 260 b. $369,000 c. $347,000 d. $330,000 Allen Corporation retires its $500,000 face value bonds at 102 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $481, 250. The entry to record the redemption will include a a. credit of $18, 750 to Loss on Bond Redemption. b. credit of $18, 750 to Discount on Bonds Payable. c. debit of $28, 750 to Gain on Bond Redemption d. d. debit of $10,000 to Premium on Bonds Payable. At December 31, 2017 the following balances existed on the books of Peabody If the bonds are retired on January 1, 2018, at 102, what will Peabody report as a loss on redemption? a. $1, 110,000 b. $960,000 c. $810,000 d. $600,000

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