Question 22 (1 point) On January 1st, 2021, AIC Inc issued bonds with a face value of $1,000,000 for $1,062,000 cash. The bonds pay interest once per year beginning December 31st, 2021 and have a 6% coupon rate of interest. At the end of 2021, after the first interest payment, the carrying value of the bonds is 1,055,000. What is interest expense for the first year? A) $67,000 B) $60,000 C) $53,000 D) $63,720 Question 23 (1 point) On January 1st, 2021, Ray issued bonds with a face value of $500,000 for $440,000 cash. The bonds pay interest once per year on December 31st, beginning in 2021, and have a coupon rate of interest of 5%. At the time of issuance, the market rate of interest was 7%. What is the carrying value of these bonds on the December 31st, 2021 balance sheet, after the first interest payment is made? OA) $465,000 B) $434,200 C) $470,800 D) $445,800 Question 24 (1 point) On January 1 of this year, Gertoni Lenders agrees to lend Ester Corp. $150,000. Ester Corp. signs a $150,000, 6%, 9-month loan. Interest is due at maturity. The entry made by Ester Corp. on January 1 to record the receipt of the loan is A) Dr: Cash Dr: Interest Expense Cr: Bank Loan Payable 150,000 6,750 156,750 150,000 B) Dr: Cash Cr: Bank Loan Payable 150,000 6,750 145,500 Dr: Interest Expense Dr: Cash Cr: Bank Loan Payable C) 150,000 150,000 6,750 Dr: Cash Dr: Interest Expense Cr: Bank Loan Payable D) 150,000 Cr: Interest Payable 6,750 Question 25 (1 point) Bond A is an 8% 5-year bond sold at par. Bond B is identical to Bond A, except that it was sold at a discount for 90% of face value. Which of the following statements about these bonds is true? A) The total interest paid over the life of bond B is higher than the total interest paid over the life of bond A B) The total interest paid over the life of bonds A and B is the same C) The total interest expense over the life of bond A is higher than the total interest expense over the life of bond B OD) The total interest expense over the life of bonds A and B is the same