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Given the following data, prepare an amortization table (use the effective method). 1/1/10 - issue $800,000, 9%, 3 year bonds, interest paid annually on 12/31,

Given the following data, prepare an amortization table (use the effective method).

1/1/10 - issue $800,000, 9%, 3 year bonds, interest paid annually on 12/31, to yield 8%

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Round answers to the nearest dollar. Enter all amounts as positive numbers.

Amortization Table

The Effective Method

Date

Cash Paid

Interest Expense

Amortization

Bond Carry Value

1/1/10

820,615

12/31/10

12/31/11

12/31/12

800,000 (rounded)

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