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Test: CPA Financial Accounting and Reporting (FAR)
1. | On January 2, Year 1, Beanstock Corporation offers to sell a $100,000 bond coming due in 10 years. The bond pays interest of 4% at the end of each year. Beanstock finds a buyer who wants to earn 7% each year, and agrees to the 7% rate at a sales price of $80,000. On the December 31, Year 1 balance sheet, what amount is reported for the liability of this bond? |
$85,600
$96,000
$93,000
$83,200
Chris
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