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Rubin's corporation issued 10 million of 5% coupon on January 1st,2020, due 31st December 2025. The market rate at issuance was 6% annual and the
Rubin's corporation issued 10 million of 5% coupon on January 1st,2020, due 31st December 2025. The market rate at issuance was 6% annual and the bond pays interest on June 30th and December 31st of each year. At the end of 2020 , the carrying value of the bonds is $9,683,028 at the end of June 2021 the carrying value will be 9,723,518. The company uses the effective market rate method to amortize the discount/premium on the bond. The interest expense accrued as of June 30,2021 , is a. $290,490 b. $250,000 c. $300,000 The interest payment on June 30,2021 , is a. $290,490 b. $250,000 c. $300,000
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