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On January 1,2024 , Splash City issues $500,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31

On January 1,2024 , Splash City issues

$500,000

of

9%

bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is

10%

and the bonds issued at

$457,102

.\ Required:\ Using an amortization schedule, show that the bonds have a carrying value of

$458,633

on December 31,2025 . (Round your final answers to nearest whole dollar.)

image text in transcribed
On January 1, 2024, Splash City issues $500,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 10% and the bonds issued at $457,102. Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $458,633 on December 31,2025 . (Round your final answers to nearest whole dollar.)

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