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Dodson Supply, Inc. has bonds payable on its balance sheet. The bonds had a face value of $750,000 and an annual coupon rate of 8%.
Dodson Supply, Inc. has bonds payable on its balance sheet. The bonds had a face value of $750,000 and an annual coupon rate of 8%. The annual effective rate on the bonds is 10%. Dodson's December 31, 2018 balance sheet shows the bonds payable at $669,976. What amount of interest expense will Dodson report for 2019 and what amount will Dodson report on its December 31, 2019 balance sheet for bonds payable
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