27.

On January 1, Elias Corporation issued 11% bonds with a face value of $55,000. The bonds are sold for $53,350. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 10 years from now. Elias records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is

a.$6,050

b.$504

c.$6,215

d.$1,650

28.

When the market rate of interest was 12%, Halprin Corporation issued $491,000, 11%, 10-year bonds that pay interest annually. The selling price of this bond issue was?

Use the present value tables in Exhibit 8 and Exhibit 10.

a.$463,256

b.$2,910,633

c.$2,791,648

d.$490,998