Cheyenne Company sells $400,000 of 14%, 10-year bonds for 92.613 on April 1, 2021. The market rate

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Cheyenne Company sells $400,000 of 14%, 10-year bonds for 92.613 on April 1, 2021. The market rate of interest on that day is 15.5%. Interest is paid each year on April 1.

Cheyenne Company uses the straight-line amortization method. The amount of interest expense for each year will be.

a. $64,955.

b. $58,955.

c. $56,000.

d. $19,815.

e. None of these.

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Financial Accounting

ISBN: 9780136899037

13th Edition

Authors: C. William Thomas, Wendy M Tietz

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Question Posted: Feb 18, 2023 09:17 AM

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Cheyenne Company sells $400,000 of 14%, 10-year bonds for 92.613 on April 1, 2021. The market rate

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Financial Accounting

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