Show the periodic interest expense over the entire life of the debentures, using the effective interest method. (6 marks) Period Date Opening Liability Balance Interest Expense (3%) Cash Payment Reduction in liability Closing Liability Balance 0 01/07/2014 2,199,120 1 31/12/2014 2,199,120 65,974 80,000 14,026 2,185,094 2 30/06/2015 2,185,094 65,553 80,000 14,447 2,170,646 3 31/12/2015 2,170,646 65,119 80,000 14,881 2,155,766 4…
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