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Question
On January 1, 2011 when the effective interest rate was 14%, a company issued bonds with a maturity value of $1,000,000. The stated rate of interest is 12%, the bonds pay interest semi-annually and sold for $893,640. The amount of bond discount amortized on July 1, 2011 is approximately
A. $1,000
B. $2,555
C. $2,000
D. $5,110
Answer
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