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Foley Co. is preparing the electronic spreadsheet below to amortize the discount on its 10-year, 6%, $100,000 bond payable. Bonds were issued on December 31
Foley Co. is preparing the electronic spreadsheet below to amortize the discount on its 10-year, 6%, $100,000 bond payable. Bonds were issued on December 31 to yield 8%. Interest is paid annually. Foley uses the effective interest method to amortize bond discounts. 1 2 A Year 1 2 $6,000 B C D Cash Interest Discount paid expense amortization 3 Which formula should Foley use in cell E3 to calculate the bonds' carrying amount at the end of Year 2? A. OB. C. D. E2 + D3. E2 + C3. E2- C3. E Carrying amount $86,580 E2 - D3
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