Question
On January 1, 2013, Felipe Hospital issued $250,000, 10 percent, 5-year bonds for $231,601. Interest is payable on June 30 and December 31. Felipe uses
On January 1, 2013, Felipe Hospital issued $250,000, 10 percent, 5-year bonds for $231,601. Interest is payable on June 30 and December 31. Felipe uses the effective interest method to amortize all premiums and discounts. Assuming a market (effective) interest rate of 12 percent, approximately how much discount will be amortized on December 31, 2013?
a. $987
b. $1,396
c. $1,480
d. $2,230
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Principles Of External Auditing
Authors: Brenda Porter, Jon Simon, David Hatherly
1st Edition
0471962120, 978-0471962120
