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What would abc inc record as interest expense for the period

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Problem 1: On january 1, year 1, abc inc, issued $1,000,000 of 8% bonds due in five years, with semi-annual interest payments on june 30 and december 31 each year. Because the investors were only willing to accept an effective annual interest rate of 12%, the bonds sold for $852,798. Using the effective interest method. What would ABC inc. record as interest expense for the period January 1 to June 30 , year 1?

Reference no: EM132973919

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