JJ Company issues a 10 year, annual bond on January 1, 2018. The bond is issued at
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Question:
JJ Company issues a 10 year, annual bond on January 1, 2018. The bond is issued at 93 and has a 4 percent contract rate. On March 1, 2020, JJ discovers that it had mistakenly applied straight-line amortization to the bond discount over a five year period instead of a ten year period. Ignore any tax effects.
Expert Answer:
Interest paid Bond face value x contractual interest 93 x 4 372 per year Bond Discount Amo... View the full answer
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