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Jones Company issued bonds with a $200,000 face value on January 1, Year 1 The five-vear term bonds were issued at 98 and hada 8.50%

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Jones Company issued bonds with a $200,000 face value on January 1, Year 1 The five-vear term bonds were issued at 98 and hada 8.50% stated rate of interest that is payable in cash on December 3tst of each year Jones amortizes the bond discount using the straight-ine method. Based on this information The amount of interest expense shown on Jones's December 31, Year 1 income statement would be Muiple Choice $17800 $16.200 s.600 S000 On January 1, Year 1, the Mahoney Company borrowed $169,000 cash from Sun Bank by issuing a five-year 8% term nate. The principal and interest are repaid by making annual payments beginning on December 31 Year 1. The annual payment on the loan based on the present value of annulty factor would be $40,750 The amount of principal repayment included in the December 31, Year 1 payment is Mutiple Cholce $13.520 $37490. $40750. s22230

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