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Fiona Inc issued $750,000, 8%, 10-year bonds on December 31, 2014, for $656,541 cash. The current market rate is 10%. The corporation uses the effective
Fiona Inc issued $750,000, 8%, 10-year bonds on December 31, 2014, for $656,541 cash. The current market rate is 10%. The corporation uses the effective interest amortization method. Interest is payable semiannually on June 30 and December 31. Showing all calculations, calculate the following: Cash interest payable each June 30 and December 31 Interest Paid Period Interest expense to be recorded on June 30, 2015 Discount amortization to be recorded on June 30, 2015 Unamortized balance of the discount after the June 30 semi-annual interest payment Carrying value of the bond after the June 30, 2015 semi-annual interest payment
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