Question
On October 1, 2020 Bonita Industries issued 6%, 10-year bonds with a face value of $ 5950000 at 104. Interest is paid on October 1
On October 1, 2020 Bonita Industries issued 6%, 10-year bonds with a face value of $ 5950000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. Bond interest expense reported on the December 31, 2020 income statement of Bonita Industries would be
a. $ 166600
b. $ 83300
c. $ 89250
d. $ 95200
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Cost Accounting Foundations and Evolutions
Authors: Michael R. Kinney, Cecily A. Raiborn
8th Edition
9781439044612, 1439044619, 978-1111626822
