A company issues $25,000,000, 7.6%, 20-year bonds to yield 8% on January 1, 2020. Interest...
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Accounting
A company issues $25,000,000, 7.6%, 20-year bonds to yield 8% on January 1, 2020. Interest is paid on June 30 and December 31. The proceeds from the bonds are $24,505,180. Using effective-interest amortization, how much interest expense will be recognized in 2020?
| a. | $1,961,623
| |
| b. | $1,960,250 | |
| c. | $980,207
| |
| d. | $1,960,815
|
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