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On January 1,2019,Always Corporation Issues $2,800,000,5-Year,11% Bonds for $2,720,000

Question 36

Multiple Choice

On January 1,2019,Always Corporation issues $2,800,000,5-year,11% bonds for $2,720,000.Interest is paid semiannually on January 1 and July 1.Always Corporation uses the straight-line method of amortization.The company's fiscal year ends on December 31.The amount of discount amortized on July 1,2019 is:


A) $4,000.
B) $8,000.
C) $16,000.
D) $80,000.

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