True/False
On January 1, a company issued a $500,000, 10%, 8-year bond payable, and received proceeds of $473,845. Interest is payable each June 30 and December 31. The total interest expense on the bond over its eight-year life is $400,000.
Total interest expense recognized is ($500,000 * 10% * 8 years) + discount ($26,155) = $426,155.
Correct Answer:
Verified
Correct Answer:
Verified
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