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Discount-Mart Issues $20 million In bonds on January 1, 2021. The bonds have a seven-year term and pay Interest semlannually on June 30 and December 31 each year. Below Is a partlal bond amortization schedule for the bonds Interest Increase in Carrying Date Cash Paid Expense Carrying Value Value 01/01/2021 06/30/2021 12/31/2021 $18,820,272 $800,000 800, 000 800, 000 800,000 $901,014 906,064 911,368 916,936 $101,014 18,121, 286 106,864 18,227,350 06/30/2022 111,368 116,936 18,338,718 18,455,654 12/31/2022 What is the stated annual rate of Interest on the bonds? (Hint: Be sure to provide the annual rate rather than the stx-month rate) (Do not round your Intermedlate calculations.) Multiple Cholce 8%

Discount-Mart Issues $20 million In bonds on January 1, 2021. The bonds have a seven-year term and pay Interest semlannually on June 30 and December 31 each year. Below Is a partlal bond amortization schedule for the bonds Interest Increase in Carrying Date Cash Paid Expense Carrying Value Value 01/01/2021 06/30/2021 12/31/2021 $18,820,272 $800,000 800, 000 800, 000 800,000 $901,014 906,064 911,368 916,936 $101,014 18,121, 286 106,864 18,227,350 06/30/2022 111,368 116,936 18,338,718 18,455,654 12/31/2022 What is the stated annual rate of Interest on the bonds? (Hint: Be sure to provide the annual rate rather than the stx-month rate) (Do not round your Intermedlate calculations.) Multiple Cholce 8%

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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Please answer both. This is part A and B
DIscount-Mart Issues $20 million In bonds on January 1, 2021. The bonds have a seven-year term and pay Interest semlannually on June 30 and December 31 each year. Below Is a partlal bond amortization schedule for the bonds Interest Increase in Carrying Date Cash Paid Expense Carrying Value Value 01/01/2021 $18,020,272 18,121,286 18,227,350 18,338,718 18,455,654 06/30/2021 $800, 000 800,000 800, 000 800,000 $901,014 906,064 12/31/2021 06/30/2022 12/31/2022 $101,014 106,864 111, 368 116,936 911,368 916,936 What is the stated annual rate of Interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate) (Do not round your Intermedlate calculations.) Multiple Cholce 8% 4%. 9%. 10%.
Transcribed Image Text:DIscount-Mart Issues $20 million In bonds on January 1, 2021. The bonds have a seven-year term and pay Interest semlannually on June 30 and December 31 each year. Below Is a partlal bond amortization schedule for the bonds Interest Increase in Carrying Date Cash Paid Expense Carrying Value Value 01/01/2021 $18,020,272 18,121,286 18,227,350 18,338,718 18,455,654 06/30/2021 $800, 000 800,000 800, 000 800,000 $901,014 906,064 12/31/2021 06/30/2022 12/31/2022 $101,014 106,864 111, 368 116,936 911,368 916,936 What is the stated annual rate of Interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate) (Do not round your Intermedlate calculations.) Multiple Cholce 8% 4%. 9%. 10%.
Charco purchased a franchise from Burger Master on January 1, 2021, for $240,000. The franchise agreement allows Charco to sell hamburgers and other related food Items using the Burger Master name for a perlod of six years Assuming Charco uses the straight-line method, what is the amortization expense for the year ended December 31, 2021? Multiple Cholce $0 $40,000, $28,000. $240.000.
Transcribed Image Text:Charco purchased a franchise from Burger Master on January 1, 2021, for $240,000. The franchise agreement allows Charco to sell hamburgers and other related food Items using the Burger Master name for a perlod of six years Assuming Charco uses the straight-line method, what is the amortization expense for the year ended December 31, 2021? Multiple Cholce $0 $40,000, $28,000. $240.000.
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