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On January 1, Year 1 Residence Company issued bonds with a exist50,000 face value. The bonds were issued at 104 resulting in a 4% premium.
On January 1, Year 1 Residence Company issued bonds with a exist50,000 face value. The bonds were issued at 104 resulting in a 4% premium. They had a 20 year term, a stated rate of interest of 7%, and an effective rate of interest of 6.633%. Assuming Residence uses the effective interest rate method, the amount of bond premium amortization recognized on December 31, Year 1 is (round any necessary computations to the nearest whole dollar) exist200. exist100. exist47. exist51. On January 1, Year 1 Residence Company issued bonds with a exist50,000 face value. The bonds were issued at 104 resulting in a 4% premium. They had a 20 year term, a stated rate of interest of 7%, and an effective rate of interest of 6.633%. Assuming Residence uses the effective interest rate method, the book value of the bond liability recognized on December 31, Year 2 is (round any necessary computations to the nearest whole dollar) exist51, 895. exist52,000. exist51, 949. exist48, 105
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