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Question D (12 marks, 25 minutes) Aecounting for Bonds Payable For each of the following multiple-choice questions, choose the lenter that corresponds to the best
Question D (12 marks, 25 minutes) Aecounting for Bonds Payable For each of the following multiple-choice questions, choose the lenter that corresponds to the best answer and blacken the corresponding lenter on the Seantron sheet. Use the information below to answer questions 1 to 6 . Mucei Corp. issued 56,000,000 face-value bonds on April 1, 2021. The bonds mature on March. 31, 2026. The annual stated interest (coupon) mate is 5,5%, and interest must be paid annually on March 31. The annual market interest rate was 6% at the time of issuance. The bends are callable (redeemable) at 101 any time after March 31, 2022. Mueci Corp.'s fiscal year ends on December 31. The company uses an discount (or premium) on bonds payable account, and the offective interest method to amortize boad discount (or premium), Use the relevant present value factors in the table below and round your calculations to the nearest dollar. Pcriods 1. The cash proceeds from the issumnce and sale of the bonds on April 1,2021 equals A, $6,127,200. B. 55,871,960. C. 56,000,000 D. $6,030,000
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