The following 2013 information is available for three companies:

Required
a. Determine the annual before-tax interest cost for each company in dollars.
b. Determine the annual after-tax interest cost for each company in dollars.
c. Determine the annual after-tax interest cost for each company as a percentage of the face value of the bonds.

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Face value of bonds payable Interest rate Income tax rate Almond Co. S500,000 7% Walnut Co. $600,000 8% 20% Filbert Co. $700,000 3% 25% 35%