Schmid Corporation issues $540,000, 8%, 5-year bonds on January 1, 2017 for $489,000. Interest is paid semiannually on January 1 and July 1
If Schmid uses the straight-line method of amortization of bond discount, the amount of bond interest expense on July 1, 2017 is:
A) $16,500.
B) $21,600.
C) $26,700.
D) $48,300.
C
Explanation: C) $540,000 × 4% = $21,600
$540,000 - $489,000 = $51,000
$51,000 ÷ 10 = $5100
Total interest expense: $21,600 + $5100 = $26,700
Business
You might also like to view...
Passenger ferry routes have been designed to tie in with rail and road systems to facilitate intermodal transportation.
a. true b. false
Business
In an advertisement for Curves for Women, consumers are encouraged to "join now" by offering them the rest of the summer free. This statement in the ad corresponds to which component of an attitude?
A) cognitive B) affective C) conative D) verbal
Business