On january 2 2012 a calendar-year corporation sold 8 bonds, Ask an Expert

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On January 2, 2012, a calendar-year corporation sold 8% bonds with a face value of $900,000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $830,400 to yield 10%. Using the effective- interest method of computing interest, how much should be charged to interest expense in 2012?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M953505

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