What amount of premium would be amortized, Accounting Basics

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What amount of premium would be amortized

On January 1, 2010, the Krueger Co. issued $140,000 of 20-year 8% bonds for $172,000. Interest was payable annually. The effective yield was 6%. The effective interest method was used to amortize the premium. What amount of premium would be amortized for the year ended December 31, 2011?

Select one:

a. $1,804.80

b. $ 453.20

c. $ 932.80

d. $ 827.20

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Accounting Basics: What amount of premium would be amortized

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Accounting Basics: What amount of premium would be amortized

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Accounting Basics: What amount of premium would be amortized

Reference No:- TGS046038

Recent Questions Asked Accounting Basics

Q : Report on income statement-straight-line amortization

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Q : Effective interest method-amount of discount

Q : Bonds affected by error

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