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How do I get this answer? Please show me step by step. Question 5 Incorrect On July 1, 20x7, Harry Ltd. purchased $217854 (par value)
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Question 5 Incorrect On July 1, 20x7, Harry Ltd. purchased $217854 (par value) of Prince's 5.7% bonds. Because the market rate was 9.5%, Harry purchased them for $175405. The bonds pay interest semi-annually on December 31 and June 30. Harry uses the amortized cost model and the effective interest method to recognize interest income on bond investments. Mark 0.00 out of 1.00 P Flag question Rounding values to the nearest dollar (if necessary), the bond discount to be amortized on December 31, 20x7 is: Select one: O a. $4086 b. $2123 o C. $8332. X O d. $6209 Your answer is incorrect. The correct answer is: $2123Step by Step Solution
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