Cud corp issued $1,000,000 of 5 year bonds one January 1, 2023 with a stated...
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Accounting
Cud corp issued $1,000,000 of 5 year bonds one January 1, 2023 with a stated interest rate of 6%. The bonds pay interest annually on December 31st. The bonds were sold at a discount of $79853.20, resulting in an effective yield of 8%. The company uses the effective interest method for amortization of the discount. How much interest expense will be recognized the first year?
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