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Auerbach Incorporated issued 4% bonds on October 1, 2024. The bonds have a maturity date of September 30, 2034 and a face value of $200
Auerbach Incorporated issued 4% bonds on October 1, 2024. The bonds have a maturity date of September 30, 2034 and a face value of $200 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2025. The effective interest rate established by the market was 6%.
Assuming that Auerbach issued the bonds for $170,245,880, what interest expense would it recognize in its 2024 income statement?
Note: Do not round intermediate calculations. Round your final answer to nearest whole dollar.
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