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On January 1, 2019, when the market rate for the bond interest was 14%, Lenoir Corporation issued bonds in the face amount of $ 500,000 with interest payable at 12% semiannually. The bonds mature on December 31, 2026, and were issued at a discount of $53, 180. How much of the discount should be amortized by the effective interest method at July 1, 2019? options: a)$ 3, 191 b)$ 2,659 c)$ 1,277 d)S 3,723

On January 1, 2019, when the market rate for the bond interest was 14%, Lenoir Corporation issued bonds in the face amount of $ 500,000 with interest payable at 12% semiannually. The bonds mature on December 31, 2026, and were issued at a discount of $53, 180. How much of the discount should be amortized by the effective interest method at July 1, 2019? options: a)$ 3, 191 b)$ 2,659 c)$ 1,277 d)S 3,723

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2019, when the market rate for the bond interest was 14%, Lenoir Corporation issued bonds in the face amount of $ 500,000 with interest payable at 12% semiannually. The bonds mature on December 31, 2026, and were issued at a discount of $53, 180. How much of the discount should be amortized by the effective interest method at July 1, 2019? options: a)$ 3, 191 b)$ 2,659 c)$ 1,277 d)$ 3,723
Transcribed Image Text:On January 1, 2019, when the market rate for the bond interest was 14%, Lenoir Corporation issued bonds in the face amount of $ 500,000 with interest payable at 12% semiannually. The bonds mature on December 31, 2026, and were issued at a discount of $53, 180. How much of the discount should be amortized by the effective interest method at July 1, 2019? options: a)$ 3, 191 b)$ 2,659 c)$ 1,277 d)$ 3,723
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