3. On January 1, 2021, Joanna Reece paid $291,000 for bonds with a face amount of $311,000. The coupon rate of interest is 11%. The effective rate of interest is 14%. Using the effective interest method, how much interest income is recognized by Joanna in 2022 (assume annual interest payments and amortization)? (Round your answer to the nearest dollar amount.)
3. On January 1, 2021, Joanna Reece paid $291,000 for bonds with a face amount of $311,000. The coupon rate of interest is 11%. The effective rate of interest is 14%. Using the effective interest method, how much interest income is recognized by Joanna in 2022 (assume annual interest payments and amortization)? (Round your answer to the nearest dollar amount.)
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 61P
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3. On January 1, 2021, Joanna Reece paid $291,000 for bonds with a face amount of $311,000. The coupon rate of interest is 11%. The effective rate of interest is 14%. Using the effective interest method, how much interest income is recognized by Joanna in 2022 (assume annual interest payments and amortization)? (Round your answer to the nearest dollar amount.)
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