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On January 1, 2020, Scottsdale Company issued its 12% bonds in the face amount of $3,000,000,...

  1. On January 1, 2020, Scottsdale Company issued its 12% bonds in the face amount of $3,000,000, which mature on January 1, 2032. The bonds were issued for $$3,408,818 to yield 10%. Scottsdale uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. The 12/31/23 Premium on Bond Payable balance is:

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Expert Solution

Solution:

Premium on Bond Payable balance on 12/31/23 would be $320,090.43

Explanation: Below is the calculation sheet

formula sheet:

ekkarill92 answered 2 years ago
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