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Webb Company has outstanding a 7% annual, 10-year, $100,000 face value bond that it had issued several years ago. It originally sold the bond
Webb Company has outstanding a 7% annual, 10-year, $100,000 face value bond that it had issued several years ago. It originally sold the bond to yield 6% annual interest. Webb uses the effective interest rate method to amortize the bond premium. On June 30, 201, the outstanding bond's carrying amount was $105,000. Required: What amount of unamortized premium on the bond should Webb report in its June 30, 20X2, balance sheet? Unamortized premium
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