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BE 252 On January 1, 2017, Zappa Enterprises Sold 8%, 20-Year Bonds

Question 59

Essay

BE 252
On January 1, 2017, Zappa Enterprises sold 8%, 20-year bonds with a face amount of $1,200,000 for $1,140,000. Interest is payable annually on January 1.
Instructions
Calculate the carrying value of the bond at December 31, 2017 and 2018.

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