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Required information [The following information applies to the questions displayed below.) On January 1 of this year, Olive Corporation issued bonds. Interest is payable once

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Required information [The following information applies to the questions displayed below.) On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective interest amortization method. The partially completed amortization schedule below pertains to the bonds: Cash Interest $ 2,562 Date January 1, Year 1 End of Year 1 End of Year 2 End of Year 3 End of Year 4 $ 2,393 2 2 2,363 Amortization Balance $ 42,734 $ 169 42,565 2 42,387 188 ? ? 42,000 9. What amount will be reported on the balance sheet at the end of Year 2 and Year 3? Bonds Payable Year 2 Year 3

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