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Find the carrying value of the bonds on the December

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Question - Weller Company issued bonds with a face value of $400,000, a 10% stated rate of interest, and a 10-year term. The bonds were issued on January 1, Year 1, and Weller uses the effective interest method of amortization. The market rate of interest on the date of issue was 8%. Interest is paid annually on December 31.

Assuming Weller issued the bonds for $453,681, find the carrying value of the bonds on the December 31, Year 3 balance sheet?

Reference no: EM132600531

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