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On July 1, 2021, Sea Universe issued $12 million of its 6% bonds for $10.8...

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Accounting

On July 1, 2021, Sea Universe issued $12 million of its 6% bonds for $10.8 million. The bonds were priced to yield 8%. The bonds are dated July 1, 2021. Interest is payable semiannually on December 31 and June 30. If the effective interest method is used, by how much should the bond discount be reduced for the 6 months ended December 31, 2021?

Group of answer choices

None of the options listed

$22,000

$90,000

$72,000

$12,000

Answer & Explanation Solved by verified expert
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