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On January 2, 2013, Kangaroo Convenience Stores Issued 10-Year, $5,000,000

Question 47

Multiple Choice

On January 2, 2013, Kangaroo Convenience Stores issued 10-year, $5,000,000, zero-coupon bonds at 75. What is the amount of interest expense recorded in 2013 using the straight line amortization method?


A) $5,000,000
B) $3,750,000
C) $1,250,000
D) $125,000

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