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What is the unamortized amount of the discount or premium

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Reference no: EM132878936

Problem - The following data relate to a $200,000,000, 5% bond issued for a selected semiannual interest period:

Bond carrying amount at beginning of period $216,221,792

Interest paid during period 5,000,000

Interest expense allocable to the period 4,864,990

Required -

(a) Were the bonds issued at a discount or at a premium?

(b) What is the unamortized amount of the discount or premium account at the beginning of the period?

(c) What account was debited to amortize the discount or premium?

Reference no: EM132878936

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