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Question - On December 31, 2019, the liability section of Texas Company's statement of financial position included bonds payable of 10 million and unamortized premium on bonds payable of 180,000. Furthermore verification revealed that these bonds were issued on December 31, 2017 and will become due on December 31, 2027. Interest at 12% is payable every June 30 and December 31. On April 1, 2020, Texas retired 4,000,000 of these bonds at 97 plus accrued interest. How much was the total amount of cash paid for the retirement of bonds on April 1, 2020?
a. 3,950,000
b. 4,000,000
c. 4,040,000
d. 4,180,000
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