The Merchart Company issued 10-year bonds on Janaary 1. The 15%6 bonds have a face value...

 

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The Merchart Company issued 10-year bonds on Janaary 1. The 15%6 bonds have a face value of $100,000 and pay interest every Janary 1 and July 1. The bonds were sold for $117,205 based on the market interest rate of 12% Merchant uses the effective interest method to amortize bond discounts and premiums. On July i of the first year, Merchant should record interest expense (round to the nearest dollar) of $7,032 O 88,790 O $14,065 O $7,500 The Merchart Company issued 10-year bonds on Janaary 1. The 15%6 bonds have a face value of $100,000 and pay interest every Janary 1 and July 1. The bonds were sold for $117,205 based on the market interest rate of 12% Merchant uses the effective interest method to amortize bond discounts and premiums. On July i of the first year, Merchant should record interest expense (round to the nearest dollar) of $7,032 O 88,790 O $14,065 O $7,500