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Eagle Corporation issued $ 9 , 9 5 0 , 0 0 0 , 6 percent bonds dated April 1 , year 1 . The

Eagle Corporation issued $9,950,000,6 percent bonds dated April 1, year 1. The market interest rate was 7 percent, with interest paid
each March 31. The bonds mature in three years, on March 31, year 4. Eagle's fiscal year ends on December 31. Use Table 8C.1, Table
8C.2.
Required:
What was the issue price of these bonds? (Round time value factor to 4 decimal places. Round the final answer to the nearest
whole dollar.)
Bond issue price
Compute the interest expense for the period ended December 31, year 1. The company uses the effective-interest method of
amortization. (Round time value factor to 4 decimal places. Round intermediate and final answer to the nearest whole dollar.)
Show how the bonds should be reported on the statement of financial position at December 31, year 1.(Round intermediate and
final answer to the nearest whole dollar.)
EAGLE CORPORATION
As of December 31, Year 1
4-a. What amount of interest expense will be recorded on March 31, year 2?(Round time value factor to 4 decimal places. Round the
final answer to the nearest dollar amount.)
4-b. Is this amount different from the amount of cash that is paid?
Yes
No
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