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On 1 August 1921, Samatya issued 450.000, 5% debentures at a 2% discount on the...

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Accounting

On 1 August 1921, Samatya issued 450.000, 5% debentures at a 2% discount on the par value of USD 150. The debentures are redeemable at a premium of 5% in five years' time. The effective rate of interest on the debentures is 4.21%. Calculate the finance cost to be shown in the statement of profit or loss for the year-ended 31 December 1921?

A.

$ 3.307.500
B.

$ 2.841.750
C.

$ 2.784.915
D.

$ 3.375.000

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