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Jeske Company issued $1,000,000 of 8% bonds at a time when the market rate of interest was 10%. If the bonds were

issued at a $50,000 discount and interest was paid annually, how much was interest expense for the first full year of the bond issue (utilize the effective-interest amortization technique)?

Select one:

a. $76,000

b. $80,000

c. $95,000

d. $100,000

Top Answer

c. $95,000 This is the... View the full answer

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