On June 30, 2018, Hardy Corporation issued $4 million of its 8% bonds for $3.5 million. The
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Question:
On June 30, 2018, Hardy Corporation issued $4 million of its 8% bonds for $3.5 million. The bonds were priced to yield 9.4%. The bonds are dated June 30, 2018. Interest is payable semiannually on December 31 and July 1. If the effective interest method is used, by how much should the bond discount be reduced for the six months ended December 31, 2018?
Multiple Choice
$3,500.
$4,500.
$4,800.
$9,000.
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas
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