Question: On Dec 3 1 , 2 0 X 1 , Barden Company issued 7 % , 1 0 year bond payable with a maturity value

On Dec 31,20X1, Barden Company issued 7%,10 year bond payable with a maturity value of $550000. Semi annual interest dates are June 30 and December 31. Market interest rate is 8%, issue price of bonds is 93.2. Company amortizes bond by the effective interest method. Calculate the Discount Account Balance on Dec 31,20X1.

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