Question
The following information pertains to the next three questions On January 1, 2020, Bennett Company issued a $10,000 face value bond that sold for 94.
The following information pertains to the next three questions On January 1, 2020, Bennett Company issued a $10,000 face value bond that sold for 94. The bond had a six-year term and with a coupon (stated) rate of 3% annual interest. The company uses the straight-line method of amortization.
1. The carrying value of the bond liability on January 1, 2020, would be
2. The amount of interest expense reported on the 2020 income statement would be
3. The carrying value of the bond liability on December 31, 2022 (the end of the third year) is expected to be
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