1) On January 1, Dallas Corp. issued $600,000, 12% APR, 5-year bonds with interest payable on July 1 and January 1. The market rate of interest was 10% APR. Determine the selling price of these bonds. (When using the PV tables, round your factors to 4 decimal places.)

A) $509,009

B) $600,000

C) $633,304

D) $646,321

2)

On January 1, 2018, Huff Co. sold $5,000,000 of its 10% bonds for $4,426,480 to yield 12%.

Interest is payable semiannually on January 1 and July 1.

What amount should Huff report as interest expense for the twelve months ended December 31, 2018?

A) $487,692

B) $500,000

C) $531,178

D) $532,113