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A corporation issued $600,000 of 8%, 5-year bonds on January 1, at 102.

Description

solution


Question

1. A corporation issued $600,000 of 8%, 5-year bonds on January 1, at 102. Interest is paid semiannually on January 1 and July 1. If the corporation uses the straight-line method of amortization, the amount of bond interest expense to be recognized on July 1 is;a. $48,000.;b. $24,000.;c. $25,200.;d. $22,800.

 

Paper#25389 | Written in 18-Jul-2015

Price : $22
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