Designer Company issued 10-year bonds on January 1. The 9% bonds have a face value of $103,000
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Designer Company issued 10-year bonds on January 1. The 9% bonds have a face value of $103,000 and pay interest every January 1 and July 1. The bonds were sold for $124,229 based on the market interest rate of 7%. Designer uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Designer should record an interest expense (round to the nearest dollar) of
a. $21,148
b. $21,810
c. $25,445
d. $18,127
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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