State the effect on the bonds issued at discount and premium, if the bonds are issued under effective interest method.

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Alessandra Manufacturing produces various electronic components. Last year, the company's variable costing net operating income was $92,400, and ending inventory increased by 1,800 units. Fixed manufacturing overhead cost per unit was $5. Determine the absorption costing net operating income for last year.

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Chapter 14, Problem 5MC

To determine

State the effect on the bonds issued at discount and premium, if the bonds are issued under effective interest method.

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Alessandra Manufacturing produces various electronic components. Last year, the company's variable costing net operating income was $92,400, and ending inventory increased by 1,800 units. Fixed manufacturing overhead cost per unit was $5. Determine the absorption costing net operating income for last year.

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