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On January 1 , Patterson Inc issued $4,000,000,9% bonds for $3,756,000. The market rate of interest for these bonds is 10%. Interest is payable annually
On January 1 , Patterson Inc issued $4,000,000,9% bonds for $3,756,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Patterson uses the effective-interest method of amortizing bond discount. At the end of the first year, Patterson should report unamortized bond discount of a. $219,600. b. $228,400. c. $206,440. d. $204,000
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