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Sweetwater Company sells $300,000 of 13%, 15-year bonds for 96.8507 on April 1, 2016, The market rate of interest on that day is 13.5%. Interest
Sweetwater Company sells $300,000 of 13%, 15-year bonds for 96.8507 on April 1, 2016, The market rate of interest on that day is 13.5%. Interest is paid each year on April 1. The issue price of the bond is $290,552. Sweetwater Company uses the straight-line amortization method. The amount of interest expense for each year wi be (Intermediary calculations are rounded to the nearest whole number.) O A. $39,000 OB. $41,130. O c. $19,815. O D. $39,630. O E. none of these
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