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Question 2 (6 marks) On January 1, 2018 ABC Corporation issued a five-year $1,000,000, 7%, at $1,050,000. Interest is paid annually on December 31. The

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Question 2 (6 marks) On January 1, 2018 ABC Corporation issued a five-year $1,000,000, 7%, at $1,050,000. Interest is paid annually on December 31. The market rate of interest is 6%. Required: a) Using the effective interest rate method, what is the interest expense at December 31, 2018? 63000 a) What is the carrying value of the bond at December 31, 20189 & 1040000 1000000 b) What is the carrying value of the bond at January 1, 20232

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