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Sunwood Corporation issued $1,000,000 of 11%, 5-year bonds at 93 on one of its semi-annual interest dates. The market rate on the issue date was
Sunwood Corporation issued $1,000,000 of 11%, 5-year bonds at 93 on one of its semi-annual interest dates. The market rate on the issue date was 13%. Assume straight-line amortization of bond discount. How much bond interest expense is recorded on the first interest payment date? A) $69,000. B) $62,000. C) $48,000. D) $60, 450. E) $41,000. What is the carrying value of the bonds after a year from the issue date? A) $935, 450. B) $958,000. C) $916,000. D) $944,000. E) $941, 254
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