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On January 1, 2016, Tonika Company issued a six-year, $10,000, 10% bond. The interest is payable annually each December 31. The issue price was $9,577
On January 1, 2016, Tonika Company issued a six-year, $10,000, 10% bond. The interest is payable annually each December 31. The issue price was $9,577 based on an 11% effective interest rate. Tonika uses the effective-interest amortization method. The book value of the bonds as of December 31, 2016 is closest to: rev: 10_08_2016_QC_CS-64487
$9,524.
$9,630.
$53.
$8,577.
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