Question
Use the information provided for Flounder Inc. to answer the question(s) using the effective interest method. On January 1, 2010, Flounder Inc. issued $600,000, 10-year,
Use the information provided for Flounder Inc. to answer the question(s) using the effective interest method.
On January 1, 2010, Flounder Inc. issued $600,000, 10-year, 5% bonds for $565,200. The bonds pay interest on December 31. The market rate is 6%.
Refer to Flounder Inc. The interest expense on the bonds at December 31, 2010, is
| a. | $33,912 | |
| b. | $28,260 | |
| c. | $30,000 | |
| d. | $31,740 |
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Accounting For Investments Fixed Income Securities And Interest Rate Derivatives Volume 2
Authors: R. Venkata Subramani
1st Edition
047082591X, 978-0470825914
