11 And 12

A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2006. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19, 604, 145. What is interest expense for 2007, using straight-line amortization? A) $1, 540, 207 B) $1, 560,000 C) $1, 569, 192 D) $1, 579, 793 Which of the following may be a current liability? A) Withheld Income Taxes B) Deposits Received from Customers C) Deferred Revenue D) All of these