Calculate bond interest expense for the first payment

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Reference no: EM13906203

Abitibi Corporation issued $649,000, 8%, 10-year bonds on January 1, 2014, for $606,789. This price resulted in an effective-interest rate of 9.0% on the bonds. Interest is payable semiannually on July 1 and January 1. Abitibi uses the straight line method to amortize bond premium or discount.

Instructions: Calculate bond interest expense for the first payment

Reference no: EM13906203

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Calculate bond interest expense for the first payment : Abitibi Corporation issued $649,000, 8%, 10-year bonds on January 1, 2014, for $606,789. This price resulted in an effective-interest rate of 9.0% on the bonds. Interest is payable semiannually on July 1 and January 1. Abitibi uses the straight line ..

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