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Auerbach Inc. issued 4% bonds on November 1, 2018. The bonds have a maturity date of October 31, 2028 and a face value of $300
Auerbach Inc. issued 4% bonds on November 1, 2018. The bonds have a maturity date of October 31, 2028 and a face value of $300 million. The bonds pay interest each April 30 and October 31, beginning April 30, 2019. The effective interest rate established by the market was 6%. Assuming that Auerbach issued the bonds for $255,369,000, what interest expense would it recognize in its 2018 income statement? O $0. O $2,553,690. O $7,661,070. O $3,830,535
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