Question
Pharoah Companyreceived proceeds of $573000on10-year,9% bonds issued on January 1, 2019. The bonds had a face value of $608000, pay interest annually on December 31,
Pharoah Companyreceived proceeds of $573000on10-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 of102.Pharoahuses the straight-line method of amortization. What is the amount of interestPharoahmust pay the bondholders in 2019?
options:
$51220
$58220
$54720
$51570
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Intermediate Accounting 2014 FASB Update
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
15th edition
978-1118938782, 111893878X, 978-1118985311, 1118985311, 978-1118562185, 1118562186, 978-1118147290
