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On November 1, 20X1, Duval Company Sold (Issued) 300, $1,000

Question 98

Multiple Choice

On November 1, 20X1, Duval Company sold (issued) 300, $1,000, ten-year, 7% bonds at 97. The bonds were dated November 1, 20X1, and interest is payable each November 1 and May 1. What would be the amount of discount amortization at each semi-annual interest date (assume straight- line amortization) ?


A) $50
B) $100
C) $450
D) $600

Correct Answer:

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