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On January 1 of the current year, the Barton Corporation issued 9% bonds with a face value of $68,000. The bonds are sold for $65,000.
On January 1 of the current year, the Barton Corporation issued 9% bonds with a face value of $68,000. The bonds are sold for $65,000. The bonds par interest semiannually on June 30 and December 31 and the maturity date is December 31, five years from now. Barton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 is a $2,040 b. 56,528 Oc. $510 Od 56,120 If $669,000 of 9% bonds are issued at 98, the amount of cash received from the sale is Oa. S669,000 Ob. $729,210 Oc. 8608,790 Od. $655,620 The Levi Company issued $72,000 of 9% bonds on January 1 of the current year at face value. The bonds pay interest semiannually on June 30 and December 31. The bonds are dated January 1, and mature in five years, on January 1. Determine the total interest expense related to these bonds for the Current year ending on December 31 is a. $6,480 b. 4,860 Oc. $3,240 Od. 5540
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