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Use following information for the questions from 10 and 11 10. On January 1, 2021, Legion Company sold $200,000 of 10% ten-year bonds. Interest is
Use following information for the questions from 10 and 11 10. On January 1, 2021, Legion Company sold $200,000 of 10% ten-year bonds. Interest is payable semiannually on June 30 and December 31. The effective interest rate established by the market was 12%. Legion records interest at the effective rate. 10. Issuing price is A) $ 200,000 B) $ 177,000 C) $ 183,900 D) $ 224,924 11. Legion should report bond interest expense for the six months ended December 31, 2021, in the amount of A) $10,600. B) $10,000. C) $10,703. D) $12,000
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