Question
A company issued 9%, 5-year bonds with a par value of $60,000. The market rate when the bonds were issued was 10%. The company received
A company issued 9%, 5-year bonds with a par value of $60,000. The market rate when the bonds were issued was 10%. The company received $57,683 cash for the bonds. Using the effective interest method, the amount of interest expense for the first semiannual interest period is:
A. $5,768.30
B. $3,000.00
C. $2,884.15
D. $2,700.00
E. $5,400.00
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Auditing The Art And Science Of Assurance Engagements
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser-Hogeterp
11th Edition
0132088061, 978-0132088060
