2. A company issues $20000000 7.8% 20-year bonds to yield 8% on January 1 2007.

    2. A company issues $20000000 7.8% 20-year bonds to yield 8% on January 1 2007. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19604145. Using effective-interest amortization what will the carrying value of the bonds be on the December 31 2007 balance sheet?3. A company issues $20000000 7.8% 20-year bonds to yield 8% on January 1 2006. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19604145. What is interest expense for 2007 using straight-line amortization?4. The 12% bonds payable of Keane Co. had a carrying amount of $832000 on December 31 2006. The bonds which had a face value of $800000 were issued at a premium to yield 10%. Keane uses the effective-interest method of amortization. Interest is paid on June 30 and December 31. On June 30 2007 several years before their maturity Keane retired the bonds at 104 plus accrued interest. The loss on retirement ignoring taxes is

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