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On January 1, 2014, Behrend Corp. issues 8-year bonds with a total face value of $10,000,000 and a stated interest rate of 5%with interest paid

On January 1, 2014, Behrend Corp. issues 8-year bonds with a total face value of $10,000,000 and a stated interest rate of 5%with interest paid annually each 12/31. The bonds are issued to provide an effective (market) interest rate of6%. Round all amounts to the nearest dollar.

The cash proceeds from issuing the bonds on 1/01/2014 is:

$10,000,000.
$9,379,021.
$10,646,321.

On January 1, 2014, Behrend Corp. issues 8-year bonds with a total face value of $10,000,000 and a stated interest rate of 5%with interest paid annually each 12/31. The bonds are issued to provide an effective (market) interest rate of6%. Round all amounts to the nearest dollar.

The amount of interest expense recognized in Behrends 2014 income statement is:

$500,000.
$532,316.
$562,741.
none of the above

none of the above

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