Rahm Corporation issued $100,000 of 20 year, 6% bonds at 103 on one of its semi-annual interest dates. Straight line method of amortization is to be used.

How much interest expense is recorded on the next interest date?

e. $3,000

f. $2,925

g. $3,075

h. $6,075

After seven years, what is the carrying value of the bonds?

e. $ 99,300

f. $101,950

g. $104,050

h. $ 98,980

What is the total interest cost (expense) of the bonds?

e. $122,000

f. $117,000

g. $123,000

h. $126,600

The amortization of the bond discount will result in reporting an interest expense for an interest period that:

e. Has no predictable relationship with the amount of cash to be paid for interest for the period.

f. Exceeds the amount of cash to be paid for the interest for the period.

g. Equals the amounts of cash to be paid for interest for the period.

h. Is less than the amount of cash to be paid for interest for the period.