Question
On January 1, Year 1, Weller Company issued bonds with a $310,000 face value, a stated rate of interest of 9.50%, and a 10-year term
On January 1, Year 1, Weller Company issued bonds with a $310,000 face value, a stated rate of interest of 9.50%, and a 10-year term to maturity. Weller uses the effective interest method to amortize bond discounts and premiums. The market rate of interest on the date of issuance was 7.50%. Interest is paid annually on December 31. Assuming Weller issued the bond for $333,090, what is the amount of interest expense that will be recognized during Year 3? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Multiple Choice
$29,450
$24,286
$24,982
$34,614
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