Question
On January 1, Elias Corporation issued 10% bonds with a face value of $108,000. The bonds are sold for $105,840. The bonds pay interest semiannually
On January 1, Elias Corporation issued 10% bonds with a face value of $108,000. The bonds are sold for $105,840. The bonds pay interest semiannually on June 30 and December 31, and the maturity date is December 31, 10 years from now. Elias records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is
a.$10,800
b.$10,584
c.$11,016
d.$2,160
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Intermediate Accounting
Authors: Earl K. Stice, James D. Stice
18th edition
538479736, 978-1111534783, 1111534780, 978-0538479738
