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View Full Version : Amortization of discount using straight line method


mustanggirl28
Jun 24, 2008, 05:57 AM
On the first day of its fiscal year. Ellis co. issued $12000000 of five year, 10% bonds to finance its operations of producing and selling home improvements products. Interest is payable semiannually. The bonds were issued at an effective interest rate of 12%, resulting in Ellis company receiving cash of $11116854. Amortization of discount at the end of the first year, using straight line method?