The corporation uses the effective interest method


A corporation issued $800,000 of 6%, 5-year bonds on January 1 when the market rate of interest was 8%. Interest is paid semiannually on June 30 and December 31. If the corporation uses the effective interest method of amortization, the amount of bond interest expense to be recognized on June 30 is?

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Accounting Basics: The corporation uses the effective interest method
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