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What is the total net proceeds from the issuance of the bond

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Question - On January 1, 2021, Toit Company issued a 10-year 9% bonds payable of P10,000,000 for a market rate of 8.5%. The company incurred 642,007.30 in bond issue costs. The amortization of bond discount was recorded using the effective interest method. Interest will be paid every January 1 of each year.

a. What is the total net proceeds from the issuance of the bond?

b. What is the effective interest rate used?

c. How much was interest expense for 2021?

d. How much interest was paid for the year 2025?

e. What is the balance of Unamortized Discount/Premium as of December 31, 2023? Indicate if premium/discount.

Reference no: EM133185801

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