On July 1, 2020, Markham Corp. issued $ 800,000, 4% bonds at 98 plus accrued interest. The bonds are dated April 1, 2020 and mature on April 1, 2027. Interest is payable semi-annually on April 1 and October 1. How much did Markham receive from the bond issuance?

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Markham Corp. issued the bonds at 98% of the face value, which is $784,000 (98% of $800,000). Additionally, since the bonds were issued on July 1, 2020, and the last interest payment date was April 1, 2020, accrued interest for 3 months (April, May, June) needs to be added. The semi-annual interest is $16,000 (4% of $800,000 / 2), so the accrued interest for 3 months is $4,000 ($16,000 / 6 * 3). Therefore, the total amount received is $784,000 + $4,000 = $788,000.