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Eagle Corporation issued $ 9 , 6 4 0 , 0 0 0 , 5 percent bonds dated April 1 , year 1 . The
Eagle Corporation issued $ percent bonds dated April year The market interest rate was percent, with interest paid each March The bonds mature in three years, on March year Eagle's fiscal year ends on December Use Table C Table
Required:
What was the issue price of these bonds? Round time value factor to decimal places. Round the final answer to the nearest whole dollar.
Bond issue price
$
Compute the interest expense for the period ended December year The company uses the effectiveinterest method of amortization. Round time value factor to decimal places. Round intermediate and final answer to the nearest whole dollar.
Interest expense
Show how the bonds should be reported on the statement of financial position at December year Round intermediate and final answer to the nearest whole dollar.
tableEAGLE CORPORATIONAs of December Year Statement of financial position:,
a What amount of interest expense will be recorded on March year Round time value factor to decimal places. Round the final answer to the nearest dollar amount
interest expense
b Is this amount different from the amount of cash that is paid?
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