Question
AAA company issues $140,000, 8%, 15-year bonds to yield 10% on January 1, 2011. Interest is paid on June 30 and December 31. The issuance
AAA company issues $140,000, 8%, 15-year bonds to yield 10% on January 1, 2011. Interest is paid on June 30 and December 31. The issuance price of the bonds is $118,479. Using effective-interest amortization, how much interest expense will be recognized in June 30, 2011? (round your answer to the nearest dollar) A. None of these answers, B. $11,848. C. $3,609. D. $5,924 E. $4500.
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
4th Canadian edition
978-1259269868, 978-1259103292
