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Question - On September 1, 2019, RC Ltd. sold $10,000, 6% (payable semi-annually each March 1 and September 1), 10-year bonds dated September 1, 2019, to yield 8%. RC Ltd. uses straight-line amortization. The accounting period ends December 31.
Required -
a) Were the bonds issued at a premium or a discount?
b) The sale price of the bond was $________________.
c) Interest expense for 2019, was $________________.
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