Question
On July 1 the Stanley Corporation issues $2,000,000 of 10-year, 7.5% bonds dated July 1 at 91 when the market rate of interest is 9%.
On July 1 the Stanley Corporation issues $2,000,000 of 10-year, 7.5% bonds dated July 1 at 91 when
the market rate of interest is 9%.
Stanley Corporation uses the straight-line method of amortization.
Interest is paid each June 30 and December 31.
The interest expense recognized for the first
semiannual interest payment on December 31 is:
A.
$9,000.
B.
$75,000.
C.
$84,000.
D.
$180,000.
How do i get this ans?
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
14th Edition
978-0132960649, 132960648, 132109174, 978-0132109178
