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On January 1, 2018, Bradley Recreational Products issued $140,000, 896, four-year bonds. Interest is paid semiannually on June 30 and Decem ber 31, The bonds

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On January 1, 2018, Bradley Recreational Products issued $140,000, 896, four-year bonds. Interest is paid semiannually on June 30 and Decem ber 31, The bonds were issued at $130,952 to yield an annual return of 10%. (FVOfS1, PVf $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required 1. Prepare an amortization schedule that determines interest at the effective interest rate 2. Prepare an amortization schedule by the straight-line method 3. Prepare the journal entries to record interest expense on June 30, 2020, by each of the two approaches 5. Assuming the market rate is still 10%, what price would a second investor pay the first investor on June 30, 2020, for $14,000 of the bonds

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