Question 4 TOPIC 6 - FINANCIAL INSTRUMENTS Not yet answered On 1 July 20x6 ABC Ltd issued a debenture with the following conditions: Term = Five years Marked out of 2.00 Flag question Fair value issue price = $5,000,000 Separate transaction costs directly attributable to the issue = $24,000 Face value on redemption = $5,270,000 Coupon interest rate = 4% (payable on 30 June each year) Effective interest rate = 5.3% Choose from the following, the CORRECT journal entry line item when accounting for changes in the carrying amount of the debenture's amortised cost at 30 June 20X8: SELECT ONE CORRECT RESPONSE Select one: O a. a debit to 'cash' of $210,800 O b. a debit to 'Investment in debentures of $55,733 O c. a debit to 'Interest expense' of $266,533 O d. a debit to 'Interest expense' of $263,728 O e. a debit to 'Interest revenue' of $269,212