Huskey Mining Corporation issued bonds with a par value of $90,000 on January 1, 2020. The annual contract rate on the bonds is 8.00%, and the interest is paid semiannually. The bonds mature after three years. The annual market interest rate at the date of issuance was 10.00%, and the bonds were sold for $85,431. a. What is the amount of the original discount on these bonds? Discount b. How much total bond interest expense will be recognized over the life of these bonds? (Do not round intermediate calculations Round the final answer to the nearest whole dollar.) Total interest expense

Huskey Mining Corporation issued bonds with a par value of $90,000 on January 1, 2020. The annual contract rate on the bonds is 8.00%, and the interest is paid semiannually. The bonds mature after three years. The annual market interest rate at the date of issuance was 10.00%, and the bonds were sold for $85,431. a. What is the amount of the original discount on these bonds? Discount b. How much total bond interest expense will be recognized over the life of these bonds? (Do not round intermediate calculations Round the final answer to the nearest whole dollar.) Total interest expense

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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