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Huskey Mining Corporation issued bonds with a par value of $92,000 on January 1, 2020. The annual contract rate on the b...

Huskey Mining Corporation issued bonds with a par value of $92,000 on January 1, 2020. The annual contract rate on the bonds is 9.00%, and the interest is paid semiannually. The bonds mature after three years. The annual market interest rate at the date of issuance was 11.00%, and the bonds were sold for $87,404.


b. How much total bond interest expense will be recognized over the life of these bonds? (Do not round intermediate calculations. Round the final answer to the nearest whole dollar.)


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Answer #1

Calculate total bond interest expense

Interest paid (92000*9%*3) 24840
Discount on bonds payable (92000-87404) 4596
Total bond interest expense 29436
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