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On January 1,2014,a Company Sells a 3-Year Bond with a Face

Question 48

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On January 1,2014,a company sells a 3-year bond with a face value of $200,000 and a stated interest rate of 8%.Because the market interest rate is lower,the company receives $209,000 for the bond.Fill in Table A assuming the company uses the straight-line method of amortization.Fill in Table B assuming the company received only $194,000 for the bond and used the straight-line method of amortization. On January 1,2014,a company sells a 3-year bond with a face value of $200,000 and a stated interest rate of 8%.Because the market interest rate is lower,the company receives $209,000 for the bond.Fill in Table A assuming the company uses the straight-line method of amortization.Fill in Table B assuming the company received only $194,000 for the bond and used the straight-line method of amortization. On January 1,2014,a company sells a 3-year bond with a face value of $200,000 and a stated interest rate of 8%.Because the market interest rate is lower,the company receives $209,000 for the bond.Fill in Table A assuming the company uses the straight-line method of amortization.Fill in Table B assuming the company received only $194,000 for the bond and used the straight-line method of amortization.

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