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Bonds with a Stated Interest Rate of 9% and a Face

question 245

Essay

Bonds with a stated interest rate of 9% and a face value totaling $600,000 were issued for $624,000 on January 1,2018,when the market interest rate was 8%.The company uses effective-interest bond amortization.
Required:
Determine the carrying value of the bonds at December 31,2019.


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