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Fora Corporation issues $2,000,000, 496, 10-year bonds to yield 5% on January 1, 2017, Interest is paid on June 30 and December 31. The proceeds
Fora Corporation issues $2,000,000, 496, 10-year bonds to yield 5% on January 1, 2017, Interest is paid on June 30 and December 31. The proceeds from the bonds are $1,844,106 1. a) Using effective-interest amortization, how much interest expense will be recognized in 2018? b) Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2018 balance sheet? c) Using straight-line amortization, how much interest expense will be recognized in 2019? d) Using straight-line amortization, what will the carrying value of the bonds be on the December 31, 2019 balance sheet
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