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Compute the present value amount

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Problem - Assume that ABC Co. Issues $100,000 in Bonds on January 1, 2016, due in 4 years with 8% interest payable annually at year end. At the time of issue, the market rate for such Bonds is 10%. Required:

a. Compute the present value amount.

b. Prepare the schedule of amortization using the effective interest method.

c. Prepare journal entries for the first year.

Reference no: EM131641795

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