On January 1, 2014, a corporation issued $400,000 of 10-year, 12% bonds. The interest is payable semi-annually
Fantastic news! We've Found the answer you've been seeking!
Question:
On January 1, 2014, a corporation issued $400,000 of 10-year, 12% bonds. The interest is payable semi-annually on June 30 and December 31. The issue price was $413,153 based on a 10% market interest rate. Assuming the effective-interest method of amortization is used, and rounding all calculations to the nearest whole dollar, what is the interest expense for the six-month period ending June 30, 2014?
A. $24,000.
B. $24,789.
C. $20,000.
D. $20,658.
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
Posted Date: