Bow Company sells $100,800 of 14%, 21-year bonds for 90 on April 1, 2017. The market rate of interest on that day is 14-2%. Interest is paid each year on April 1. Bow Company uses the straight-line amortization method. The sale price of the bonds was $90,720. The amount of interest expense on April 1 of each year will be which of the following? (Round your answers to the nearest whole dollar.) A. $8,112 B. $15,272 C. $14,592 D. $8,316 E. None of these. The interest expense is $ Nelson Inc. manufactures and sells computer monitors with a three-year warranty. Warranty costs are expected to average 8% of sales during the warranty period. The following table shows the sales and actual warranty payments during the first two years of operations: (Click to view the sales and actual warranty payments during the first two years of operations.) Based on these facts, what amount of warranty liability should Nelson Inc. report on its balance sheet at December 31, 2017? A. $32,000 B. $36,500 c. $59,500 D. $96,000 1: Sales and actual warranty payments Year 2016 $ Sales Warranty Payments 500,000 $ 4,500 700,000 32,000 2017 McDolman Corporation issued $100,600 of 10%, 6-year bonds payable on January 1, 2017, for $92,280. The market interest rate when the bonds were issued was 12%. Interest is paid semi-annually on January 1 and July 1. The first interest payment is July 1, 2017. Using the effective-interest amortization method, how much interest expense will McDolman record on July 1, 2017? A. $5,030 B. $5,258 C. $6,036 D. $6,808 E. $5,537