Can I send you a few more questions to answer in the next 10 minutes?

On January 1, 2014, Behrend Corp. issues 8-year bonds with a total face value of $10,000,000 and a stated interest rate of 5%with interest paid annually each 12/31.The bonds are issued to provide an effective (market) interest rate of6%. Round all amounts to the nearest dollar. The bonds carrying value reported in Behrends year-end 12/31/2014 balance sheet is:

$10,000,000.

$9,441,762.

$10,578,637.

none of the above.

On January 1, 2014, Behrend Corp. issues 8-year bonds with a total face value of $10,000,000 and a stated interest rate of 5%with interest paid annually each 12/31.The bonds are issued to provide an effective (market) interest rate of6%. Round all amounts to the nearest dollar. The amount of interest expense recognized in Behrends 2014 income statement is:

$500,000.

$532,316.

$562,741.

none of the above.