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So I'm not sure about the first two answers and need help with the third. Foley Company issued $2,000,000 of 6%, 5-year bonds at 98,
So I'm not sure about the first two answers and need help with the third.
Foley Company issued $2,000,000 of 6%, 5-year bonds at 98, which pay interest annually. Assuming straight-line amortization, what is the total interest cost of the bonds? $600,000 $640,000 $560,000 $580,000 Larson Company issued $1,000,000 of 8%, 5-year bonds at 106. Assuming straight-line amortization and annual interest payments, what is the amount of the amortization at each interest payment point? $6,000 $12,000 C $80,000 $68,000 Sparks Company received proceeds of $634,500 on 10-year, 8% bonds issued on January 1, 2016. The bonds had a face value of $600,000, pay interest annually orn December 31st, and have a call price of 102. Sparks uses the straight-line method of amortization. What is the carrying value of the bonds on January 1, 2018? O $600,000 $627,600 C $572,400 $631,050 (Ctrl)Step by Step Solution
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