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What amount of discount should be amortized

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Question - Bramble Corp. issued $480000 of 7%, 10-year bonds on one of its interest dates for $414576 to yield an effective annual rate of 9%. The effective-interest method of amortization is to be used. Interest is paid annually.

What amount of discount (to the nearest dollar) should be amortized for the first interest period?

a. $3712

b. $4580

c. $5808

d. $7424

Reference no: EM132538793

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