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On January 1, Alpha Corporation issued and sold $200,000, 7%, 10-year bond payable, and received proceeds of S198,000. Interest is paid semiannually. The company uses

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On January 1, Alpha Corporation issued and sold $200,000, 7%, 10-year bond payable, and received proceeds of S198,000. Interest is paid semiannually. The company uses the straight-line method to amortize the discount. What amount of discount should be amortized every period? a $200 b. $2,000 O None of the above. Od: $100. QUESTION 3 A company issued 10 year, 8% bonds with a par value of $400,000. Interest is paid semiannually. The market rate on the issue date was 7.5%. The company received $413,896 in cash proceeds. Which of the following statements is true? a. The company must pay $400,000 at maturity plus 20 interest payments of $16,000 each. b. The company must pay $400,000 at maturity and no interest payments. c. The company must pay $413,896 at maturity plus 20 interest payments of $16,000 each. d. The company must pay $400,000 at maturity plus 20 interest payments of $15,000 each

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