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Wildhorse Company sells 10% bonds having a maturity value of $2,020,000 for $1,874,375. The bonds are dated January 1,2020 , and mature January 1,2025. Interest
Wildhorse Company sells 10% bonds having a maturity value of $2,020,000 for $1,874,375. The bonds are dated January 1,2020 , and mature January 1,2025. Interest is payable annually on January 1. (a) Determine the effective-interest rate. (Round answer to O decimal places, es. 18\%.) The effective-interest rate % eTextbook and Media Attempts: 1 of 3 used (b) Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round intermediate calculations to 5 decimal places, es. 1.25124 and final answer to 0 decimal places, e.8. 38,548.) Schedule of Discount Amortization Effective-Interest Method \begin{tabular}{l|l} Dec. & \\ 31. & 202000 \\ 2022 & \end{tabular} 230757.12000 28757.12000 Dec. Dec. 234207.97440 32207.97440 Dec. 31. 2024 decimal places, es. 1.25124 and final answer to O decimal places, eg. 38,548.)
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