Nexus Industries issued $8.0 million of 5% bonds on January 1, 2025, for $7.2 million. The bonds were priced to yield 7.5%. The bonds mature on December 31, 2034, with interest payable semiannually on June 30 and December 31. Using the effective interest method, calculate the bond discount amortization for the six months ended June 30, 2025.

Nexus Industries issued $8.0 million of 5% bonds on January 1, 2025, for $7.2 million. The bonds were priced to yield 7.5%. The bonds mature on December 31, 2034, with interest payable semiannually on June 30 and December 31. Using the effective interest method, calculate the bond discount amortization for the six months ended June 30, 2025.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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