What is the amount of bond to be amortized

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Question - On 2 January 2015 KJH Company issued $1.5 million of 10% bonds at 97 due on 31 December 2024. KJH follows ASPE, and so capitalized and amortized legal and other associated costs of $110,000 by including them with the bond recorded at issuance. Interest on the bond is payable each 31 December, and the associated and legal costs are being deferred and amortized on a straight-line basis over the 10 year term of the bond. .The discount on the bond is also being amortized on a straight line basis over 10 years. This is NOT materially different in effect from the effective interest rate method. The bonds are callable at 102 and on 2 January 2020 the company called a face amount of $850,000 of the bonds and retired them. What is the amount of bond to be amortized over each of the 10 years?

Reference no: EM133172730

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