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On January 2, 2020, a calendar-year corporation sold 6% bonds with a face value of $3220000....

On January 2, 2020, a calendar-year corporation sold 6% bonds with a face value of $3220000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $2959000 to yield 8%. Using the effective-interest method of computing interest, how much should be charged to interest expense in 2020?


a. $237590.

b. $236720.

c. $257600.

d. $193200.

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Expert Solution

ekkarill92 answered 1 year ago
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