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## Accounting

 Accounting Basics Cost Accounting Financial Accounting Managerial Accounting Auditing Taxation

On July 1, 2010, Navarre Corporation issued bonds with a face value of \$100,000 and 12% interest payable semiannually. The bonds mature on June 30, 2015. The market rate of interest at the time of issuance was 14%, so the bonds were issued at a discount of \$7,054. Using the effective interest method, the amount of discount that should be amortized by Navarre on December 31, 2010, is:

Select one:

a. \$493.75

b. \$506.26

c. \$423.21

d. \$702.35

Accounting Basics, Accounting

• Category:- Accounting Basics
• Reference No.:- M946036

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