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On January 1, Year 1, Residtence Company issued bonds with a $50,000 face value. The bonds were issued at to4 resaiting in a 4% premlum
On January 1, Year 1, Residtence Company issued bonds with a $50,000 face value. The bonds were issued at to4 resaiting in a 4% premlum Ihey had a 20 . yeat term, a stated rate of interest of 7%, and on cffectlve rate of interest of 6.633%. Assuming Residence uses the effective interest rate method, the carrying value of the bond liability on January 1, Yeat 1 is (round amy necessary computations to the nearest whole dollan) 350000 562000 546500
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