40. A government has $2,000,000 of 6%, 10-year general obligation bonds outstanding. The bonds were issued on July 2, 2012 to finance construction of...
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40.
A government has $2,000,000 of 6%, 10-year general obligation bonds
outstanding. The bonds were issued on July 2, 2012 to finance construction of a
general capital asset. Interest is payable semiannually on January 1 and July 1,
and $200,000 of principal is due each July 1.
What is the maximum amount of interest the government would report for the
fiscal year ending December 31, 2012?
$0
$20,000
$60,000
$120,000

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