Alex Company issued 5-year, 7% bonds with a par value of $100,000. The company received $101,137 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:

A) $3,386.30.
B) $3,500.00.
C) $3,613,70.
D) $6,633.70.
E) $7,000.00.

Answer: A) $3,386.30.

Business

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