Question
On January 1 of Year 1, Congo Express Airways issued $3,600,000 of 6% bonds that pay interest semiannually on December 31 and June 30. The
On January 1 of Year 1, Congo Express Airways issued $3,600,000 of 6% bonds that pay interest semiannually on December 31 and June 30. The bond issue price is $3,270,000 and the market rate of interest for similar bonds is 7%. The bond premium or discount is being amortized at a rate of $11,000 every six months. The amount of interest expense recognized by Congo Express Airways on the bond issue in Year 1 would be:
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Global Financial Accounting And Reporting Principles And Analysis
Authors: Peter Walton, Walter Aerts
2nd Edition
1408017725, 978-1408017722
