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Merchant Company issued 10-year bonds on January 1. The 5% bonds have a face value of $746,000 and pay interest every January 1 and July
Merchant Company issued 10-year bonds on January 1. The 5% bonds have a face value of $746,000 and pay interest every January 1 and July 1. The bonds were sold for $620,008 based on the market interest rate of 6%. Merchant uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Merchant should record interest expense (round to the nearest dollar) of
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