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Metro Inc. sells 10% bonds having a maturity value of $3 million for $2,783,713. The bonds are dated January 1, 2017 and mature on January
Metro Inc. sells 10% bonds having a maturity value of $3 million for $2,783,713. The bonds are dated January 1, 2017 and mature on January 1, 2022. Interest is payable annually on January 1. Set up a schedule of interest expense and discount amortization under the effective interest method. Round calculations to the nearest dollar. [5 marks]
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