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Brimfest Corporation issued $2,400,000, 10-year, 6% bonds for $2,352,000 on January 1,2019. Interest is paid semiannually on January 1 and July 1. The corporation uses thestraight-line method of amortization. Brimfest’s fiscal year ends on December 31. Theamount of discount amortization on July 1, 2019, would bea. $2,400.b. $4,800.c. $48,000.d. $144,000

Brimfest Corporation issued $2,400,000, 10-year, 6% bonds for $2,352,000 on January 1,2019. Interest is paid semiannually on January 1 and July 1. The corporation uses thestraight-line method of amortization. Brimfest’s fiscal year ends on December 31. Theamount of discount amortization on July 1, 2019, would bea. $2,400.b. $4,800.c. $48,000.d. $144,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Brimfest Corporation issued $2,400,000, 10-year, 6% bonds for $2,352,000 on January 1,
2019. Interest is paid semiannually on January 1 and July 1. The corporation uses the
straight-line method of amortization. Brimfest’s fiscal year ends on December 31. The
amount of discount amortization on July 1, 2019, would be
a. $2,400.
b. $4,800.
c. $48,000.
d. $144,000

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