Question
On January 2, 2020, a calendar-year corporation sold 6% bonds with a face value of $3220000. These bonds mature in five years, and interest is
On January 2, 2020, a calendar-year corporation sold 6% bonds with a face value of $3220000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $2959000 to yield 8%. Using the effective-interest method of computing interest, how much should be charged to interest expense in 2020?
a. $237590.
b. $236720.
c. $257600.
d. $193200.
On January 2, 2020, a calendar-year corporation sold 6% bonds with a face value of $3220000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $2959000 to yield 8%. Using the effective-interest method of computing interest, how much should be charged to interest expense in 2020?
a. $237590.
b. $236720.
c. $257600.
d. $193200.
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Interpersonal Skills in Organizations
Authors: Suzanne de Janasz, Karen Dowd, Beth Schneider
5th edition
978-0078112805
