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Point 1: Cramer Company sold five-year, 10% bonds on October 1, 2021. The face amount of the bonds was $175,000, while the issue price was $184,000. Interest is payable on April 1 of each year. The fiscal year of Cramer Company ends on December 31.
Question 1: How much interest expense will Cramer Company report in its December 31, 2021, income statement (assume straight-line amortization)? (Do not round intermediate calculations.)
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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