On January 1, 2007, Guardiola, Inc. sold 8% bonds with a face value of $600,000....
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Accounting
On January 1, 2007, Guardiola, Inc. sold 8% bonds with a face value of $600,000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold to yield 10%. The applicable income tax rate is 35%. If the appropriate entry on June 30, 2007 is made, but the entry on December 31, 2007 is skipped, net income for 2007 will be:
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