On January 1, Year 1, Price Co. issued $190,000 of five-year, 6 percent bonds at 96½. Interest is payable annually on December 31. The discount is amortized using the straight-line method. Required a. Determine the amount of cash proceeds received by Price Co. on January 1, Year 1. b. Calculate the amount of interest expense reported on the December 31, Year 2, income statement. c. What is the carrying value of the bond liability as of December 31, Year 2?
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