Question
On January 1, 2016, Sinclair Corp. bought equipment using a $10,000,000 zero-interest-bearing bond due on January 1, 2021. The prevailing rate of interest for a
On January 1, 2016, Sinclair Corp. bought equipment using a $10,000,000 zero-interest-bearing bond due on January 1, 2021. The prevailing rate of interest for a note like this on January 1, 2016 was 7%. What amount of interest expense should be included in Sinclair's 2017 income statement?
a.$499,100.00
b.$0.00
c.$534,037.00
d.$571,419.59
The answer is C, how?
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Managerial Accounting
Authors: Karen Braun, Linda S Bamber
2nd Edition
136091164, 978-0136091165
