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Kaleidoscope Paint On January 1, 2019, This Company Issued $500,000, 10-Year, 9

Question 108

Multiple Choice

Kaleidoscope Paint
On January 1, 2019, this company issued $500,000, 10-year, 9% bonds for $480,745. The bonds pay interest on June 30 and December 31. The market rate is 10%. The company plans to use the effective interest method of amortizing bond discounts and premiums.
-Refer to Kaleidoscope Paint. The cash payment on June 30, 2019, is


A) $25,000.
B) $22,500.
C) $45,000.
D) $50,000.

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