McPartlin Corporation issued $300,000 of 10%, 10-year bonds payable on January 1, 20X0, for $236,370. The market

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McPartlin Corporation issued $300,000 of 10%, 10-year bonds payable on January 1, 20X0, for $236,370. The market interest rate when the bonds were issued was 14%. Interest is paid semi-annually on January 1 and July 1. The fi rst interest payment is July 1, 20X0.

Using the effective-interest amortization method, how much interest expense will McPartlin record on July 1, 20X0?

a. $15,500

d. $21,000

b. $15,000

e. $16,546

c. $14,500

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Financial Accounting International Financial Reporting Standards

ISBN: 9780273777809

1st Global Edition

Authors: Walter T Harrison, Charles Horngren, Bill Thomas, Themin Suwardy

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