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On May 1, 2013, a firm issued $400,000 of 12year, nine percent bonds payable at 96 1/2 plus accrued interest. The bonds are dated January

On May 1, 2013, a firm issued $400,000 of 12year, nine percent bonds payable at 96 1/2 plus accrued interest. The bonds are dated January 1, and interest is payable on January 1 and July 1 of each year. The amount the firm receives on May 1 from the sale of the bonds (see Appendix 10A) is:

Select one:

$386,000.

$422,000.

$392,000.

$398,000.

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