A company issues $25450000, 7.8%, 20-year bonds to yield 8% on January 1, 2024. Interest is paid on June 30 and December 31. The proceeds from the bonds are $24946274. If the effective-interest method of amortization is used, what amount of interest expense will be recognized in 2024? O $1985100 O $992550 O $1995706 O $1995914

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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A company issues $25450000, 7.8%, 20-year bonds to yield 8% on January 1, 2024. Interest is paid on June 30 and December 31. The
proceeds from the bonds are $24946274. If the effective-interest method of amortization is used, what amount of interest expense
will be recognized in 2024?
$1985100
O $992550
O $1995706
O $1995914
Transcribed Image Text:A company issues $25450000, 7.8%, 20-year bonds to yield 8% on January 1, 2024. Interest is paid on June 30 and December 31. The proceeds from the bonds are $24946274. If the effective-interest method of amortization is used, what amount of interest expense will be recognized in 2024? $1985100 O $992550 O $1995706 O $1995914
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