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Question 26 (7 points) 26. USE THE FOLLOWING INFORMATION FOR QUESTIONS 26, 27 AND 28: On January 1, 2010, Wallace Corporation issued 10% bonds with
Question 26 (7 points) 26. USE THE FOLLOWING INFORMATION FOR QUESTIONS 26, 27 AND 28: On January 1, 2010, Wallace Corporation issued 10% bonds with a face value of $900,000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $833,760 to yield 12% (the market rate). Wallace uses a calendar-year reporting period. Using the effective-interest method of amortization, what is the carrying value of the bonds at 6/30/2011? Round your answer to the nearest dollar. OA. $833,786 OB. $849,759 OC. $827,134 O E. $844,113 Question 27 (7 points) 27. How much is the TOTAL interest expense for 2010 OA. $100,051 OB. $103,222 OC. $50,647 OD. $100,353 Question 28 (7 points) 28. What is the balance of the unamortized bond discount account at December 31, 2010 O A. $10,353 OB. $55,887 OC. $50,241 OD. $100,974
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