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On January 1, 2018 ABC Corporation issued a five-year $1,000,000,7%, at $1,050,000. Interest is paid annually on December 31. The market rate of interest is

On January 1, 2018 ABC Corporation issued a five-year $1,000,000,7%, at $1,050,000. Interest is paid annually on December 31. The market rate of interest is 6%. Required a) Using the effective interest rate method, what is the interest expense at December 31, 2018? a) What is the carrying value of the bond at December 31, 2018? $ b) What is the carrying value of the bond at January 1, 2023? $

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