Question: **PLEASE CHOOSE RIGHT ANSWER, IGNORE RED ANSWER AS IT IS MARKED WRONG*** PLEASE SHOW WORK On January 1, 20X1, when the market rate of interest

**PLEASE CHOOSE RIGHT ANSWER, IGNORE RED ANSWER AS IT IS MARKED WRONG*** PLEASE SHOW WORK

On January 1, 20X1, when the market rate of interest was 12%, Sunshine Company issued fiveyear bonds with a maturity value of $750,000. The bonds have a 10% stated rate and pay interest semi-annually on July 1 and December 31.

Requirements:

  1. Calculate the bond discount as of the date of issue.
  2. Calculate the bond discount balance as of January 1, 20X1.

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