Comte Industries issues $3,000,000 worth of three-year bonds dated January 1, 2015. Th e bonds pay interest

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Comte Industries issues $3,000,000 worth of three-year bonds dated January 1, 2015.

Th e bonds pay interest of 5.5% annually on December 31. Th e market interest rate on bonds of comparable risk and term is 5%. Th e sales proceeds of the bonds are $3,040,849.

Under the straight-line method, the interest expense in the fi rst year is closest to:

A . $150,000.

B . $151,384.

C . $152,042.

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International Financial Statement Analysis Workbook

ISBN: 9781119628095

4th Edition

Authors: Thomas R. Robinson, Elaine Henry, Wendy L. Pirie

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Question Posted: Mar 28, 2024 04:01 AM

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Comte Industries issues $3,000,000 worth of three-year bonds dated January 1, 2015. Th e bonds pay interest

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B is correct Under the straightline method the bond premium is amortize...View the full answer

International Financial Statement Analysis Workbook

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