j) If they use effective interest amortization, how much of the discount (or premium) will they amortize in 20X1? k) If they use effective interest amortization, will interest expense for 20X2 be the same as, higher or lower than interest expense for 20X1? I) If they used effective interest amortization, how much will their net liability be on December 31, 20X1? [Choose ] [Choose ] [Choose ] >
j) If they use effective interest amortization, how much of the discount (or premium) will they amortize in 20X1? k) If they use effective interest amortization, will interest expense for 20X2 be the same as, higher or lower than interest expense for 20X1? I) If they used effective interest amortization, how much will their net liability be on December 31, 20X1? [Choose ] [Choose ] [Choose ] >
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 12E: On October 1, 2019, Ball Company issued 9% bonds dated October 1, 2019, with a face amount of...
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Question
In January 1 20x1 abc company issued a 1000000 10 year bond with a stated interest rate of 9% payable annually every December 31st the market interest rate is 7% the bonds price is 1140160.
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