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QUESTION INFORMATION: On January 1, 2020, Harrisburg Company issued 7-year bonds with a face value of $3,000. Harrisburg uses the effective interest rate method of

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QUESTION INFORMATION: On January 1, 2020, Harrisburg Company issued 7-year bonds with a face value of $3,000. Harrisburg uses the effective interest rate method of amortization. A bond amortization table corresponding to this issuance has been partially completed for you below. Premium Premium Date Interest Payment Interest Expense Carrying Amount Amortization Balance 1-1-2020 $180.0 12-31-2020 $150.0 $127.2 12-31-2026 $0.0 $3,000.0 QUESTION TO ANSWER: The market rate of interest is: O 5.00% 6.00% O 4.24% O 4.72% O 4.00% O 5.66%

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