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On January 1, 2018, the Meade Group issued callable bonds, dated January 1, 2018. Interest is payable semiannually on June 30 and December 31. The
On January 1, 2018, the Meade Group issued callable bonds, dated January 1, 2018. Interest is payable semiannually on June 30 and December 31. The bonds mature in four years on December 31, 2021. The following amortization schedule has been projected from issuance until maturity. Effective Interest Increase in Balance Amortization Schedule Cash Interest 01/01/18 06/30/18 $22,500 12/31/18 22,500 06/30/19 22,500 12/31/19 22,500 06/30/20 22,500 12/31/20 22,500 06/30/21 22,500 12/31/21 22.500 $180.000 $24,192 24,277 24,366 24,459 24,557 24,660 24.768 24,881 $126.158 $1,692 1,777 1,866 1,959 2,057 2,160 2,268 2.381 $16.158 Outstanding Balance $483,842 485,534 487,311 489,176 491,135 493,192 495,351 497,619 500,000 What would be the amount related to the bonds that Meade Group would report in its income statement for the year ended December 31, 2018? None of the other three answers is correct. $45,000
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