January $1,$ Year $1,$ Pierce Corporation issued $$25,000$ in $8\%,5-$year bonds payable at $102.$ Interest payments are due each December $31.$ Pierce uses

straight$-$line method to amortize bond discounts and premiums.

ch of the following shows the effect of the interest payment and amortization on December $31,$ Year $1?$

Multiple Choice

Option B

Option A

Option C

On January $1,$ Year $1,$ Denver Company issued bonds with a face value of $$65,000,$ a stated rate of interest of $9\%,$ and a $5-$year term to maturity. The

bonds were sold at $103.$ Denver uses the straight$-$line method to amortize bond discounts and premiums. What is the amount of interest expense during

Year $1?$

Multiple Choice

$$5,46C$

$$6,240$

$$6,02lon$

$$5,850$

On January $1,$ Year $1,$ Jones Company issued bonds with a $$220,000$ face value, a stated rate of interest of $7\mathrm{.}5\%,$ and a $5-$year term to maturity. The bonds

were issued at $97.$ Interest is payable in cash on December $31$st of each year. The company amortizes bond discounts and premiums using the straight$-$line method.

What is the amount of interest expense shown on Jones' income statement for the year ending December $31,$ Year $1?$

Multiple Choice

$$17,820$

$$19,140$

$$15,180$

$$16,500$