58) Oa 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. Imerest is payable in eash on December 31 of each year. Which of the following statements is tnue if Wayne isued the bonds at 96 ? A) The market rate of interest was equal to the stated nate of interest B) The market rate of interest was lower than the stated rate of interest. C) The market rate of imerest was higher than the stated rate of interest. D) The bonds carried a variable interest rate that changed in response to market conditions. 59) On January 1. Year 1 Residence Company issued bonds with a $50,000 face 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 carrying valuc of the bond liability on January 1, Year 1 (just after issuance) is: A) 552,000 C) 548,000 B) $50,000. D) 546,500 . 60) On Jancary 1. Year 1, Denver Company issued bonds with a face value of $100,000, 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 I? A) 57,500 C) 58.000 B) 58.500 D) 510,500 The following information applies fo questions 61 and 62 : On January 1, Year 1 , Wayne Company issued bonds with a face value of 5600,090 , 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 EXPENSE. Wayne will report on its income statement for the year ending December 31. Year I? A) 534,500 C) 537,500 B) $36,000 D) $15,000 62) What is the carrying value of the bonds at December 31 , Year 1 (after recording the Year 1 interest and any related amortization)? A) 5601,500 C) 5615,000 B) $613,500 D) $616,500