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Rutland, Inc issued $200,000, 11%, 15-year bonds on January 1, 2015. These bonds pay interest semi-annually on June 30 and December 31. The bonds were
Rutland, Inc issued $200,000, 11%, 15-year bonds on January 1, 2015. These bonds pay interest semi-annually on June 30 and December 31.
The bonds were issued for $186,235, to yield 12%.
How much interest expense will Rutland report for 2015 on these bonds?
a. | $11,000 | |
b. | $11,158 | |
c. | $22,000 | |
d. | $22,359 |
Refer to the information above for Rutland, Inc.
What is the carrying value of the bond on December 31, 2015 (the end of the first year of the bond issue)?
a. | $186,061 | |
b. | $222,359 | |
c. | $186,594 | |
d. | $186,409 |
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