On January 1, 2019, when the market rate for bond interest was 14%, Lenoir Corporation issued bonds

Question:

On January 1, 2019, when the market rate for bond interest was 14%, Lenoir Corporation issued bonds in the face amount of $500,000 with interest at 12% payable semiannually. The bonds mature on December 31, 2026, and were issued at a discount of $53,180. How much of the discount should be amortized by the effective interest method at July 1, 2019?
a. $1,277
b. $2,659
c. $3,191
d. $3,723

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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