Question
On January 1, 2021, Solo Inc. issued 2,600 of its 8%, $1,000 bonds at 98. Interest is payable semiannually on January 1 and July 1.
On January 1, 2021, Solo Inc. issued 2,600 of its 8%, $1,000 bonds at 98. Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2031. Solo paid $30,000 in bond issue costs. Solo uses straight-line amortization. The amount of interest expense for 2021 is:
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$221,400.
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$208,000.
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$216,200.
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$213,200.
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Financial Accounting For MBAs
Authors: Peter D. Easton, John J. Wild, Robert F. Halsey, Mary Lea McAnally
6th Edition
161853100X, 978-1618531001
