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QUESTION
Exhibit 14-3 Nazzi, Inc. sold $400,000 of its 9%, 5-year bonds dated January 1, 2010, on May 1, 2010, for $393,000 plus accrued interest.
Exhibit 14-3
Nazzi, Inc. sold $400,000 of its 9%, 5-year bonds dated January 1, 2010, on May 1, 2010, for $393,000 plus accrued interest. Interest is paid on January 1 and July 1 and straight-line amortization is used.
Refer to Exhibit 14-3. The net liability for the bonds after recording the sale would be: $408,000
$407,700
$400,000
$393,000
