Question
On January 1, 2016, Solo Inc issued 1,100 of its 7%, $1000 bonds at 98. Interest is payable semiannually on January 1 and July 1.
On January 1, 2016, Solo Inc issued 1,100 of its 7%, $1000 bonds at 98. Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2026. Solo paid $62,000 in bond issue costs. Solo uses straight-line amortization. The amount of interest expense for the year is:,
A) $85,400
B) $87,600
C) $79,200
D) $77,000
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Intermediate Accounting
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
1st edition
978-0133251579, 133251578, 013216230X, 978-0134102313, 134102312, 978-0132162302
