Accounting 201

Use the following to answer questions 5 and 6:0 1 1 109) YTIVUMMOD MOBHAD HDTHE On January 1, 2021, Nevada Corporation issued 8% bonds with a face value of $10,000,000. The bonds sold for $11,487,747. They mature in ten years and pay interest semiannually on June 30" and December 31st. The market rate of interest at the time the bonds were issued was 6%. Nevada uses the effective interest method for amortizing bond discounts and premiums. 5 . Total interest expense Nevada would report on its income statement for the year ended December 31, 2021 relative to these bonds is closest to: A) $800,000 - B) $600,000 $689,265 Bores snow and sol flee Why abnod droll $687,603 18 6. Total interest paid by Nevada on these bonds for the year ended December 31, 2021 is closest to: brin jog and -C) $689.265 0a blake mohsin out ofautumn D) $687.603 sil to song street and T Alf andmoped] (A