Question
On January 1, Elias Corporation issued 6% bonds with a face value of $65,000. The bonds are sold for $63,050. The bonds pay interest semiannually
On January 1, Elias Corporation issued 6% bonds with a face value of $65,000. The bonds are sold for $63,050. 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.$325
b.$1,950
c.$4,095
d.$3,900
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
