15. What is the total effective interest paid over the term of the lease? su221 A. $334,596. B. $374,596. C. $425,404. D. $$1,174,596. bas 18,0FZot bloe abnod adT 8105.1 16. Scottie Adams Bird Supplies issued 10% bonds, dated January 1, with a face amount of $240,000 on January 1, 2018. The bonds mature in 2028 (10 years). For bonds of similar risk and maturity the market yield is 12%. Interest is paid semiannually on June 30 and December 31. What is the price of the bonds at January 1, 2018? A. $212,471. B. $229,729. C. $350,110. D. $366,626. 17. Auerbach Inc. issued 4% bonds on October 1, 2018. The bonds have a maturity date of September 30, 2028 and a face value of $300 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2019. The effective interest rate established by the market was 6%. Assuming that Auerbach issued the bonds for $255,369,000, what interest expense would it recognize in its 2018 income statement? A. $0. B. $3,830,535. C. $5,107,380. D. $7,661,070. 18. Griggs Co. failed to amortize the discount on an outstanding five-year bond issue. What is the resulting effect on interest expense and the bond book value, respectively? A. Understated, understated. B. Understated, overstated. C. Overstated, overstated. D. Overstated, understated.