Question
Vaughn Company received proceeds of $206800 on 10-year, 6% bonds issued on January 1, 2020. The bonds had a face value of $220000, pay interest
Vaughn Company received proceeds of $206800 on 10-year, 6% bonds issued on January 1, 2020. The bonds had a face value of $220000, pay interest annually on December 31, and have a call price of 101. Vaughn uses the straight-line method of amortization. What is the amount of interest Vaughn must pay the bondholders in 2020?
$11880
$14520
$13200
$12320
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Principles of Financial Accounting
Authors: Belverd E. Needles, Marian Powers
12th edition
978-1133940562, 1133940560, 978-1285608464, 1285608461, 1133939287, 978-0357693605, 978-1285607047, 128560704X, 978-1133939283
