Question
The Marsallis Corporation issued 1,000, 10 year, 10% stated interest bonds with a total face value of $1,000,000 on January 1, 2019. The interest is
The Marsallis Corporation issued 1,000, 10 year, 10% stated interest bonds with a total face value of $1,000,000 on January 1, 2019. The interest is payable each December 31. The issue price was $887,020 based on the market rate of 12% at the date of issuance. Assuming the effective-interest amortization method is being used, the interest expense and remaining carrying value of the bond on December 31, 2019, after the payment of interest, rounded to the nearest whole dollar would be
Multiple Choice
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$106,442 and $893,462.
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$111,298 and $898,318.
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$100,000 and $887,020.
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Cannot be determined with provided information.
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