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On January 1, 2012, Falcon, Inc. issued $400,000, 10- year, 10% bonds for $354,200. The bonds pay interest on June 30 and December 31. The market rate is 12%. The cash payment on June 30, 2012 is: a. $20,000 b. $21,200 c. $24,000 d. $17,710

On January 1, 2012, Falcon, Inc. issued $400,000, 10- year, 10% bonds for $354,200. The bonds pay interest on June 30 and December 31. The market rate is 12%. The cash payment on June 30, 2012 is: a. $20,000 b. $21,200 c. $24,000 d. $17,710

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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On January 1, 2012, Falcon, Inc. issued $400,000, 10- year, 10% bonds for $354,200. The bonds pay interest on June 30 and December 31. The market rate is 12%. The cash payment on June 30, 2012 is: a. $20,000 b. $21,200 c. $24,000 d. $17,710
Transcribed Image Text:On January 1, 2012, Falcon, Inc. issued $400,000, 10- year, 10% bonds for $354,200. The bonds pay interest on June 30 and December 31. The market rate is 12%. The cash payment on June 30, 2012 is: a. $20,000 b. $21,200 c. $24,000 d. $17,710
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