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On January 1 of Year 1, Congo Express Airways issued $2,250,000 of 5% bonds that pay interest semiannually on January 1 and July 1 The
On January 1 of Year 1, Congo Express Airways issued $2,250,000 of 5% bonds that pay interest semiannually on January 1 and July 1 The bond issue price is $2,030,000 and the market rate of interest for similar bonds is 6%. The bond premium or discount is being amortired at a rate of $7,333 every six months. After accruing interest at year end, the company's December 31, Year 1 balance sheet should reflect total abilities associated with the bond issue in the amount of Multiple Choice O $1.988,416 o o 0 $2,100,916 $2.455 334 o $2.511,584 o o $2.044666
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