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ment CALCIATO FULL SCREEN PRINTER VERSION BACK NEXT Multiple Choice Question 152 A corporation issues $228000, 10%, 5-year bo
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Answer #1

The correct answer is option C- $20880

Notes

Total amount of discount = 228000-218400 = $9600

Total tenure of bonds = 5 years

Hence, amount to be amortized each year = 9600/5 = $1920

Interest payment = 228000*10% = $22800

Interest expense = 22800-1920 = $20880

Please comment in case of any issue and I will be happy to help.

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