On June 30, 2021, Moran Corporation issued $13.0 million of its 8% bonds for $11.7 million. The bonds were priced to yield 10%. The bonds are dated June 30, 2021. Interest is payable semiannually on December 31 and July 1. If the effective interest method is used, by how much should the bond discount be reduced for the six months ended December 31, 2021?

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A:

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A: Determine Carrying amount of bonds payable Face value of bonds P4,000,000 Issued at 97% issued…

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A: PREPARATION OF BOND DISCOUNT SCHEDULE

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A:

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