Question
Pharoah Company received proceeds of $573000 on 10-year, 9% bonds issued on January 1, 2019. The bonds had a face value of $608000, pay interest
Pharoah Company received proceeds of $573000 on 10-year, 9% bonds issued on January 1, 2019. The bonds had a face value of $608000, pay interest annually on December 31, and have a call price of 102. Pharoah uses the straight-line method of amortization. What is the amount of interest Pharoah must pay the bondholders in 2019?
$51220
$51570
$54720
$58220
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Accounting Principles A Business Perspective
Authors: Roger H. Hermanson, James Don Edwards, Michael W. Maher
1st Edition
1680921851, 978-1680921854
