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What is the carrying value of the bond at December

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Question - On January 1, 2018 ABC Corporation issued a five-year $1,000,000, 7%, at $1,050,000. Interest is paid annually on December 31. The market rate of interest is 6%.

Required: a) Using the effective interest rate method, what is the interest expense at December 31, 2018?

b) What is the carrying value of the bond at December 31, 2018?

c) What is the carrying value of the bond at January 1, 2023?

Reference no: EM132515169

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