Practice Final Exam – Acct 284
The bonds pay interest annually, beginning on December 31, 2006. Newton received $1,153,420 in cash at the issuance of the bonds. The market rate of interest when the bonds were sold was 5%. Compute the amount of the premium that Newton Corporation should amortize on December 31, 2006, assuming the “effective-interest” method is used. A ... ................
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