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On September 1, 2021, Contemporary Products, issued $16 million of its 10% bonds at face value. The bonds are dated June 1, 2Multiple Choice Zero. $200,000 $400,000. O $1.6 million

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Answer:

Accrued Interest = Bond Value x Rate of Interest x period

Accrued Interest = $16000000 x 10% x 3/12 = $400000

At the time of issuance, Contemporary Products would receive cash proceeds that would include accrued interest of :$400000

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