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Merchant Company issued 10-year bonds on January 1. The 6% bonds have a face value of $708,000 and pay interest every January 1 and July
Merchant Company issued 10-year bonds on January 1. The 6% bonds have a face value of $708,000 and pay interest every January 1 and July 1. The bonds were sold for $588,426 based on the market interest rate of 7%. Merchant uses the effective interest rate method to amortize bond discounts and premiums. On July 1 of the first year, Merchant should record interest expense (rounded to the nearest dollar) of Oa. $17.653 Ob. $21.240 Oc $24.780 Od. $20,595
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