Question
On January 1, 2015, Kramer International Inc. issued $400,000, 9%, 5-year bonds for $384,556. The bonds were sold to yield an effective interest rate of
On January 1, 2015, Kramer International Inc. issued $400,000, 9%, 5-year bonds for $384,556. The bonds were sold to yield an effective interest rate of 10%. Interest is paid semi-annually on June 30 and December 31. The company uses the effective-interest method of amortization. How much interest expense will be accounted for in 2015?
Multiple Choice
$38,517.00
$19,289.20
$19,227.80
None of the other alternatives are correct
$38,455.60
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Management Accounting Principles And Applications
Authors: Hugh Coombs, D Ellis Jenkins, David Hobbs
1st Edition
1412908434, 978-1412908436
