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Marin Company sells 10% bonds having a maturity value of $2,200,000 for $2,118,688. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1.

Assianment Open Assignment CALCULATOR FULL SCREEN PRINTER VERSION BACK ASSIGNMENT RESOURCES Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18%.) The effective-interest rate 14-1 LINK TO TEXT Review Score Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) Objective Schedule of Discount Amortization Effective-Interest Method Cash Paid Interest Expense Discount Amortized Carrying Amount of Bonds Year Jan. 1, 2017 Jan. 1, 2018 Jan. 1, 2019 an. 1, 2020 Jan. 1, 2021 Jan. 1, 2022 10:54 | ^瘟恤脈4,》 1/26/2

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Effective Interest Rate Calculation:
Issue Price of Bond $                       -2,118,688
Interest on Bond for Year 2017 2200000*10% $                            220,000
Interest on Bond for Year 2018 2200000*10% $                            220,000
Interest on Bond for Year 2019 2200000*10% $                            220,000
Interest on Bond for Year 2020 2200000*10% $                            220,000
Interest on Bond for Year 2021+Maturity Amount 2200000+(2200000*10%) $                        2,420,000
Formula Used IRR(C6:C11)
Effective Interest Rate 11.00%
Schedule:
Year Cash Paid Interest Expense Discount Amortized Carrying Amount
10% of 2200000 11% of Carrying Amount of previous Year Interest-Cash Paid Carrying amt of previous year-Discount
Jan 1 2017 $                    81,312 $          2,118,688
Jan 1 2018 $                            220,000 $                            233,056 $                    13,056 $          2,131,744
Jan 1 2019 $                            220,000 $                            234,492 $                    14,492 $          2,146,235
Jan 1 2020 $                            220,000 $                            236,086 $                    16,086 $          2,162,321
Jan 1 2021 $                            220,000 $                            237,855 $                    17,855 $          2,180,177
Jan 1 2022 $                            220,000 $                            239,819 $                    19,823 $          2,200,000
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