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On January 1, 2017, Concord Corporation sold 9% bonds with a face value of $2700000. The...

On January 1, 2017, Concord Corporation sold 9% bonds with a face value of $2700000. The bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $2924600 to yield 7%. Using the effective-interest method of amortization, interest expense for 2017 is

Entry field with incorrect answer

$204052.
$189000.
$204672.
$243000
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Answer #1

A B C E Premium Carrying Interest Interest expense amortized value paid 1 Periods $ 2,924,600 2 Jan 1, 2017 30, 2017 $121,500

A C D Е Carrying value Interest Premium Interest paid amortized 1 Periods expense 2924600 2 Jan 1, 2017 3 June 30, 2017 27000

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