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Exercise 10-20A Effective interest amortization of a bond discount LO 10-6 On January 1, Year 1, Parker Company issued bonds with a face value of

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Exercise 10-20A Effective interest amortization of a bond discount LO 10-6 On January 1, Year 1, Parker Company issued bonds with a face value of $71,000, a stated rate of interest of 11 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 13 percent at the time the bonds were issued. The bonds sold for $66,006. Parker used the effective interest rate method to amortize the bond discount (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Required a. Prepare an amortization table. Date Cash Payment Interest Expense Discount Amortization Carrying Value 66,006 66.776 7,810 8,581 771 January 1, Year 1 December 31, Year 1 December 31, Year 2 December 31, Year 3 December 31, Year 4 December 31, Year 5 Totals

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