58) Oa Jansayy 1. Year 1. Wayne Compsny iscued bonds with a face value of 5600,000 , a 6% stated rate of inkerest, and a 10-year temt. Inmerest is payable in cash on December 31 of each year. Which of the following statements is true if Wayne issued the bonds at 96 ? A) The market rate of imerest was equal to the stated rate of interest. B) The market rate of iaterest was lower than the stated rate of interest. C) The markel rate of interest was higher than the stated rate of interest. D) The bonds carned a variable imerest rate that changed in response to market conditions. 59) On January 1. Year 1 Residence Company issued bonds with a 550,000 fice value. The bonds were issued at 96 . The bonds had a 20 year term and a stated rate of interest of 7%. Based on this information, the estying value of the hond liability on Jamuary 1, Year 1 (just after issuance) is: A) 552,000 C) 548,000. B) 550,000 D) 546,500 . 60) On January 1. Year 1, Denver Company issued bonds with a face value of 5100.000 , a stated rate of. interest of 8%, and a 5 -year term to maturity. The bonds were sold at 102.5 . What is the amount of interest PAID on December 31, Year 1 ? A) 57,500 C) $8,000 B) 58.500 D) 510,500 The following imformation applies to questions 61 and 62: On January 1, Year 1, Wayne Company issued bonds with a face value of $600,000, a 6% stated rate of interest, and a 10 -year term. Interest is payable in cash on December 31 of each year. The bonds are issued at 102:5. 61) What is the amount of interest FXPENSE Wayne will report on its income statement for the year ending December 31, Year 1 ? A) 534,500 C) 537,300 B) $36,000 D) $15,000 62) What is the camying value of the bonds at December 31, Year 1 (afier recording the Year 1 interest and any related amortization)? A) 5601,500 C) 5615,000 B) 5613,500 D) $616,300